To Maintain the Peg, a Nation Must Keep Its Circulating

question 61

Multiple Choice

To maintain the peg, a nation must keep its circulating money supply constant. What factor(s) (in addition to its own actions) might result in a change in the money supply?

• A) a change in the demand for money produced by an output shock or a change in foreign rates of interest
• B) an increase in the trade gap
• C) the issuance of new government bonds by the nation's government
• D) a crackdown on money laundering activities by multinational corporations

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Definitions:

Vote

The act of expressing one's choice or opinion in a meeting or election.

Reconstruction Amendments

Refers to the 13th, 14th, and 15th amendments to the United States Constitution, adopted after the Civil War, which abolished slavery, granted citizenship rights, and gave voting rights to formerly enslaved individuals.

Birthright Citizenship

The legal principle whereby anyone born within a country's territory automatically acquires its citizenship at birth.

Segregation

The enforced separation of different racial groups in a country, community, or establishment, resulting in inequality and discrimination.