Suppose the Government of New Country Has Fixed the Value

question 119

Multiple Choice

Suppose the government of New Country has fixed the value of its currency, the New Peso, at $1 per New Peso, but the market equilibrium value of the New Peso is $2 per New Peso. In order to maintain the official value of the New Peso the Central Bank of New Country must either _____ domestic interest rates, or ________the supply of international reserves by purchasing New Pesos

• A) raise; increase
• B) raise; decrease
• C) lower; decrease
• D) lower; increase

---

Definitions:

File Optimizer

A software tool designed to reduce the size of files while preserving their quality and functionality.

Compressed

Refers to files or data that have been reduced in size using various algorithms to save space or facilitate quicker transmission.

Unzip

Refers to extracting files from a compressed format.

Extract

To retrieve specific data from a larger dataset or remove a certain part of a content or document.