Under a Fixed Exchange-Rate System, Which of the Following Will

question 285

Multiple Choice

Under a fixed exchange-rate system, which of the following will not occur if the demand for the local currency rises?

• A)The central bank will accumulate foreign-exchange reserves.
• B)The domestic money supply will increase.
• C)As a result of the central bank's actions to maintain the peg, a positive item appears in the balance-of-payments statement.
• D)The economy will experience an increase in inflationary pressure.

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Definitions:

Sleep Deprivation

Sleep deprivation occurs when an individual fails to get the required amount of sleep, leading to physical and cognitive impairments, including fatigue, reduced concentration, and mood swings.

Long-Term Memory

The phase of memory capable of storing information over extended periods, ranging from days to decades, and involves data of all types, from factual knowledge to emotional experiences.

Working Memory

A cognitive system responsible for temporarily holding information available for processing, important for reasoning and the guidance of decision-making and behavior.

Semantic Memory

A type of long-term memory involving the ability to remember facts and general knowledge about the world.