If There Is an Excess Supply of the Domestic Currency

question 41

Multiple Choice

If there is an excess supply of the domestic currency at a fixed exchange rate,

• A) the currency will undergo a devaluation
• B) the currency will appreciate
• C) the country must switch to a floating exchange rate
• D) the central bank must buy up that excess supply or the exchange rate will fall
• E) the central bank must be up that excess supply or the exchange rate will rise

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Definitions:

Hippocampus

The structure in the medial temporal lobe that plays a central role in memory storage and retrieval.

Basal Ganglia

The central nervous system structure involved in the storage and retrieval of procedural memories.

Prefrontal Cortex

This area of the brain that selects the experiences to be held in working memory, maintains those experiences in working memory, integrates experiences that are separated over time, and monitors the experiences being held in working memory; this brain structure also encodes the probability of success and the value of success and makes choices (executive control) according to the predictions of the matching law.

Visual Attributes

Characteristics or properties that are perceived by sight, such as color, shape, size, and motion.