Assuming Flexible Exchange Rates,which of the Following Would Result in an Increase

question 100

Multiple Choice

Assuming flexible exchange rates,which of the following would result in an increase in a country's exchange rate?

• A)The purchase by the central bank of its own currency.
• B)The purchase by the central bank of foreign currencies.
• C)The sale by the central bank of its own currencies.
• D)The central bank decreasing the country's interest rates.
• E)The government imposing an export tax.

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Definitions:

Sphincter Muscles

Ring-like muscles that constrict or close a bodily passage or orifice to control the passage of substances.

Arterioles

Small blood vessels that branch off from arteries and lead to capillaries, playing a critical role in regulating blood flow and pressure.

Capillary Beds

Networks of capillaries, which are the smallest blood vessels, providing the site for the exchange of oxygen, carbon dioxide, nutrients, and waste between blood and tissues.

Pulmonary Semilunar Valve

A heart valve that prevents backflow of blood from the pulmonary artery into the right ventricle.