An Example in the Text of Argentina's Convertibility Plan During

question 144

Multiple Choice

An example in the text of Argentina's convertibility plan during 1993-94 indicated that because of a growing economy, the central bank expanded the supply of money to maintain its U.S. dollar peg by:

• A) acquiring foreign reserves.
• B) buying domestic bonds.
• C) issuing new government liabilities.
• D) selling gold.

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Definitions:

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