When Faced with a Continual Excess Demand for Foreign Exchange

question 26

Multiple Choice

When faced with a continual excess demand for foreign exchange, which of the following options can the government choose to eliminate the disequilibrium situation?

• A)increase the peg or devalue
• B)engage in fiscal policy and raise the country's income level
• C)engage in monetary policy and lower interest rates
• D)increase the inflation rate
• E)decrease the peg or revalue

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Definitions:

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A branch of phylogenetics that analyzes genetic, hereditary molecular differences, principally in DNA sequences, to gain information on an organism's evolutionary relationships.

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