If,other Things Being Equal,a Country with a Flexible Exchange Rate

question 3

Multiple Choice

If,other things being equal,a country with a flexible exchange rate increases its money supply,this will lead to _____ in the value of the country's currency,which will tend to _____ national income.

• A) a depreciation; increase
• B) a depreciation; decrease
• C) an appreciation; increase
• D) an appreciation; decrease

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Definitions:

Unbiased

A term used in statistics to describe an estimate or model that is accurate and not skewed by any factors.

Point Estimate

A single value given as an estimate of a population parameter that is of interest, usually derived from sample data.

Sampling Distribution

A statistical probability distribution derived from a high volume of samples taken from a particular population.

Unbiased Estimator

A statistical estimator that, on average, equals the parameter being estimated.