Under the Flexible Exchange Rate System,when a Country Tries to Stimulate

question 39

Multiple Choice

Under the flexible exchange rate system,when a country tries to stimulate economic growth and improve its employment rates,it is likely to cause:

• A)the domestic inflation rate to rise and the domestic currency to depreciate.
• B)the domestic inflation rate to rise and the domestic currency to appreciate.
• C)the domestic inflation rate and the value of the domestic currency to remain constant.
• D)the domestic inflation rate to fall and the domestic currency to appreciate.
• E)the domestic inflation rate to fall and the domestic currency to depreciate.

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Definitions:

Pneumoconiosis

A disease of the lungs caused by the inhalation of various forms of dust, often in occupational settings.

Bronchoscope

A medical instrument used to view the inside of the airways and lungs.

Bronchi

The major air passages of the lungs that diverge from the windpipe.

Asthma

A chronic inflammatory disorder of the airways that causes episodes of wheezing, breathlessness, chest tightness, and coughing.