Under a Fixed Exchange Rate Regime,what Would Be the Result

question 93

Multiple Choice

Under a fixed exchange rate regime,what would be the result if a country rapidly increased its money supply by printing currency?

• A) It would lead to increase in the worth of the currency.
• B) The prices of imports would become more attractive in the country.
• C) The country's goods would be highly competitive in world markets.
• D) Trade surplus in the country would increase.
• E) It would lead to price deflation in the country.

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Definitions:

Aggressive Desires

Internal urges or tendencies towards hostility, confrontation, or exerting dominance over others or situations.

Pleasure Principle

In psychoanalytic theory, the driving force of the id that seeks immediate gratification of all desires, wants, and needs.

Superego

The component of the psyche in Freudian psychoanalytic theory that represents internalized societal norms and morals, acting as a counter to the id.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality, playing a key role in decision making and maintaining one's sense of self.