Suppose That at the Prevailing Yen-Dollar Exchange Rate There Is

question 92

Multiple Choice

Suppose that at the prevailing yen-dollar exchange rate there is an excess demand for dollars.To stabilize exchange rates,the United States might

• A)Lower taxes.
• B)Reduce government spending.
• C)Raise interest rates.
• D)Pursue contractionary monetary policy.

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Definitions:

Salvador Allende

Salvador Allende was a Chilean physician, socialist politician, and the first Marxist to become president of a country through open elections.

Nixon Administration

The presidency of Richard Nixon, the 37th President of the United States, which lasted from 1969 to 1974.

Economic Aid

Financial assistance provided by one country or international organization to another to support its economic development and welfare.

CIA

The Central Intelligence Agency, a United States federal agency responsible for foreign intelligence and national security.