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

question 22

Multiple Choice

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

• A)increase;appreciate
• B)increase;depreciate
• C)decrease;appreciate
• D)decrease;depreciate

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Definitions:

Erythrocyte Production

The process by which new red blood cells (erythrocytes) are generated, primarily occurring in the bone marrow, known medically as erythropoiesis.

Minerals

Inorganic substances required by the body in small amounts for a variety of functions, including building strong bones and teeth, and regulating metabolism.

Buffers

Substances that minimize changes in pH by absorbing or releasing hydrogen ions in a solution.

Enzymes

Biological catalysts that speed up chemical reactions in living organisms by lowering the activation energy, involved in processes such as digestion and metabolism.