Author Question: If the Fed wants to maintain a dollar exchange rate of 1.20 euros per dollar but the exchange rate ... (Read 116 times)

cookcarl · **on:** Jun 29, 2018

If the Fed wants to maintain a dollar exchange rate of 1.20 euros per dollar but the exchange rate rises, then in the short run the Fed can

A) buy dollars and buy euros.
B) do nothing.
C) sell dollars and sell euros.
D) buy dollars and sell euros.
E) sell dollars and buy euros.

Question 2

Bill's Lawn service starts the year with 20 lawn mowers. During the year, 3 mowers break and are not worth fixing. Bill also expands his business and buys 10 more mowers. Bill's net investment is ________ mowers.

A) 13 B) 7 C) 10 D) 20 E) 27