If a Central Bank Does Not Want to See Its

question 97

Multiple Choice

If a central bank does not want to see its currency fall in value,it may pursue ________ monetary policy to ________ the domestic interest rate,thereby strengthening its currency.

• A)expansionary;raise
• B)contractionary;raise
• C)expansionary;lower
• D)contractionary;lower

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Definitions:

Health Psychology

A field of psychology focused on understanding how psychological, behavioral, and cultural factors contribute to physical health and illness.

Obesity

A medical condition characterized by excessive body fat that presents a risk to health, often determined by a body mass index (BMI) of 30 or higher.

Culture

The characteristics and knowledge of a particular group of people, encompassing language, religion, cuisine, social habits, music, and arts.

Productivity

Measures the efficiency of production output in relation to the input resources used.