Aruba Pegs Its Currency (The Aruban Florin) to the U

question 101

Multiple Choice

Aruba pegs its currency (the Aruban florin) to the U.S. dollar at a rate of Af 2 = $US1. Suppose that the actual exchange rate is equal to this pegged rate. Which of the following best describes the effect on Aruba's money supply from purchasing dollars?

• A) The money supply will increase.
• B) The money supply will decrease.
• C) The money supply will not change.
• D) The money supply will not change as the exchange rate appreciates.

---

Definitions:

Overeating

The consumption of food in quantities greater than the energy requirements of the body, often leading to weight gain and potential health issues.

Adaptive Behavior Patterns

Actions or behaviors that enable an individual to meet their needs in a specific environment, often through learning and adjustment.

Psychological Disorders

Mental disorders or conditions characterized by impairments in thought, behavior, and emotions, leading to significant distress or disability.

Psychotherapies

Treatment methods aimed at helping individuals understand and overcome their psychological problems and disorders.