Suppose That Econland Adopts a Fixed Exchange-Rate System and Pegs

question 50

Multiple Choice

Suppose that Econland adopts a fixed exchange-rate system and pegs the value of its peso to the U.S. dollar. If Econlanders' demand for dollars increases in the foreign exchange markets, then Econland's foreign-exchange reserves will

• A)increase.
• B)decrease.
• C)stay the same.
• D)equal the trade balance.

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Definitions:

Lateral Gene Transfer

The non-inheritance transmission of genetic material between different species, contributing to genetic diversity and evolution.

Vertical Gene Transfer

The transmission of genetic information from parent to offspring through sexual or asexual reproduction.

Conjugal Gene Transfer

A process in bacteria where genetic material is transferred between bacterial cells through direct contact.

Binary Fission

A method of asexual reproduction seen in prokaryotic organisms and some single-celled eukaryotes, where a cell divides into two genetically identical daughter cells.