When a Reserve Currency Country Runs a Balance of Payments

question 85

Multiple Choice

When a reserve currency country runs a balance of payments deficit and a nonreserve currency country buys the reserve currency to finance the reserve country's deficits,the monetary base in the nonreserve country ________ and the monetary base in the reserve country ________.

• A) increases; decreases
• B) increases; does not change
• C) decreases; does not change
• D) decreases; increases

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Definitions:

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Sexual Activities

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Randomized Control Trial

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