Under a Fixed Exchange Rate System,a Balance of Payments Deficit

question 84

Multiple Choice

Under a fixed exchange rate system,a balance of payments deficit may:

• A)decrease the country's money supply if there is a non-sterilized central bank intervention.
• B)decrease the country's money supply if there is a sterilized central bank intervention.
• C)increase the country's money supply if there is a non-sterilized central bank intervention.
• D)increase the country's money supply if there is a sterilized central bank intervention.

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Definitions:

African-American Worker

An African-American Worker refers to an employee in the labor market who identifies as African American, highlighting the consideration of racial demographics within labor studies.

Labor Market

The supply and demand for labor, where employers seek to hire employees and employees seek jobs, and wages are determined.

Income-Maintenance Programs

Government programs designed to provide financial assistance to individuals or households to ensure a minimum level of income.

Aggregate Spending

The total amount of spending in an economy, including consumption, investment, government purchases, and net exports.