Figure 13.1 -Refer to Figure 13.1.In a Fixed Exchange Rate Regime,if an Rate

question 23

Multiple Choice

Figure 13.1
-Refer to Figure 13.1.In a fixed exchange rate regime,if an economy is experiencing external disequilibrium at point B,then to peg the exchange rate the central bank has to:

• A) buy domestic currency, sell foreign currency, and shift the LM to the right.
• B) buy foreign currency, sell domestic currency, and shift the LM to the right.
• C) buy domestic currency, sell foreign currency, and shift the IS to the left.
• D) buy foreign currency, sell domestic currency, and shift the IS to the right.

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Definitions:

Manifest Function

The recognized and intended consequences of any social pattern, process, or action.

Latent Function

A secondary or hidden effect of social structures, not explicitly stated or intended.

Primary School

An educational institution for young children, typically aged 5 to 11, offering the first stage of compulsory education.

Youth Culture

Youth culture pertains to the beliefs, behaviors, and norms adopted by young people, often distinguishing them from older generations and creating a sense of collective identity.