Starting from a Position Where a Country's Money Demand Equals

question 22

Multiple Choice

Starting from a position where a country's money demand equals the money supply and its balance of payments is in equilibrium.According to the monetary approach,an expansionary monetary policy will lead to an ______ of the home currency under flexible exchange rate regime; whereas it will cause trade _______ under fixed exchange rate.

• A) depreciation; deficit
• B) depreciation; surplus
• C) appreciation; deficit
• D) appreciation; surplus

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Definitions:

Leukocytes

White blood cells that are part of the immune system, protecting the body against both infectious disease and foreign invaders.

Thrombocytes

Thrombocytes, also known as platelets, are blood cells involved in hemostasis, leading to the formation of blood clots in response to bleeding.

Immunoglobulin

A type of protein functioning as an antibody, produced by the immune system to combat pathogens.

Antigen

A substance that induces an immune response in the body, especially the production of antibodies.