Use the Following to Answer Questions

question 50

Multiple Choice

Use the following to answer questions :
Scenario: Gizmovia
The Republic of Gizmovia wants to maintain the exchange rate of its currency, the gizmo, at $0.50, but the current exchange rate for the gizmo is $0.40.
-(Scenario: Gizmovia) Look at the scenario Gizmovia. If Gizmovia uses monetary policy to bring the exchange rate for the gizmo to $0.50, it should _____ interest rates by _____ the money supply.

• A)decrease; decreasing
• B)decrease; increasing
• C)increase; increasing
• D)increase; decreasing

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Definitions:

Analytical Intelligence

An aspect of intelligence characterized by the ability to analyze, evaluate, judge, compare, and contrast information.

Achievement Tests

Standardized tests designed to assess a person's knowledge or proficiency in a particular area or subject.

Learned Knowledge

Knowledge acquired through experience, study, or being taught.

Eugenics

A controversial science aimed at improving the genetic quality of the human population through selective breeding.