When the Demand for a Currency Permanently Increases, That Nation's

question 47

True/False

When the demand for a currency permanently increases, that nation's central bank can maintain its fixed exchange rate indefinitely.

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Definitions:

Marginal Change

A small incremental adjustment to a plan of action.

Incremental Adjustment

Small, gradual changes or modifications made in response to changing conditions or to improve a process or system.

Scarcity

A fundamental economic problem of having seemingly limitless human wants in a world of limited resources, leading to the necessity of making trade-offs.

Marginal Cost

Marginal cost is the cost of producing one more unit of a good or service, which can vary depending on the level of production.