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:

Critical Thinking

The intellectual process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an informed conclusion or decision.

Deductive Logic

A method of reasoning from the general to the specific, where conclusions follow necessarily from premises if those premises are true.

Emotional Intelligence

The ability to understand and manage one's own emotions, as well as recognize and influence the emotions of others.

Evidence-Based Management

The practice of making managerial decisions based on the best available evidence from scientific research and organizational data.