Everything Else Held Constant,if a Central Bank Makes an Unsterilized

question 112

Multiple Choice

Everything else held constant,if a central bank makes an unsterilized ________ of foreign assets,then the domestic money supply will increase and the domestic currency will ________.

• A)purchase;appreciate
• B)purchase;depreciate
• C)sale;appreciate
• D)sale;depreciate

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Definitions:

Straight-Line Depreciation

An approach to apportion the expense of a tangible resource over its effective life period in consistent annual installments.