If a Central Bank Does Not Want to Allow the Domestic

question 50

Multiple Choice

If a central bank does not want to allow the domestic currency to depreciate,it will ________ international reserves by purchasing its currency,thereby ________ the monetary base and increasing the risk of higher unemployment.

• A)lose;decreasing
• B)lose;increasing
• C)acquire;decreasing
• D)acquire;increasing

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Definitions:

Instrumental Learning

Instrumental learning is a learning process where behavior is modified based on the consequences it produces, such as rewards or punishments.

Classical Conditioning

The process of learning through the repeated combination of two stimuli, with the outcome being that a response initially elicited by the second stimulus is over time triggered by the first stimulus independently.

Meat Powder

A product derived from dehydrated and pulverized meat, used in various culinary or laboratory experiments.

Bell

A device that produces sound through the vibration of a metal component, often used for signaling or alert purposes.