If the United States Has a Current Account Deficit with England

question 58

Multiple Choice

If the United States has a current account deficit with England of $1 million,and the Bank of England sells $1 million worth of pounds in the foreign exchange market,then England ________ $1 million of international reserves and its monetary base ________ by $1 million.

• A)gains;rises
• B)gains;falls
• C)loses;rises
• D)loses;falls

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Definitions:

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Social-Cognitive Theorist

A psychologist who studies how people learn through observing others and the effects of cognitive processes on social behavior.

Reinforced

Strengthened or supported, especially in the context of behavior strengthened by rewards or consequences.

Wavelength

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave.