If Britain Allows the Pound-DM (Deutsche Mark) Exchange Rate to Float

question 152

Multiple Choice

If Britain allows the pound-DM (Deutsche Mark) exchange rate to float, and there is an increase in the foreign interest rate, it:

• A) has no effect on home rates.
• B) will cause a monetary contraction and a higher interest rate in Britain.
• C) will eventually decrease if trade is affected.
• D) always shifts out the home IS curve (Britain), all else equal.

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Definitions:

Social Status

The position or rank of a person or group within society, often determined by wealth, occupation, education, or family lineage.

Two-Spirit

A term used by some Indigenous North American cultures to describe a person who embodies qualities of both genders, holding a distinct social and spiritual role.

Human Sexuality

The way people experience and express themselves as sexual beings, including physical, emotional, social, and spiritual dimensions.

Mangaia

An island in the Cook Islands known for its unique sexual culture and practices.