This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following can help to explain why higher inflation may lead to currency appreciations? ... (Read 94 times)

fahad

  • Hero Member
  • *****
  • Posts: 570
on: Jun 30, 2018
Which of the following can help to explain why higher inflation may lead to currency appreciations?
 
  A) The interest rate is not the prime target of monetary policy.
  B) Most central banks adjust their policy interest rates expressly so as to keep inflation in check.
  C) Central banks increase the money supply leading to overshooting of the exchange rate.
  D) Inflation will increase the purchasing power of a currency.
  E) The world market does not adjust their currency trade to reflect inflation.

Question 2

Which of the following has a currency board?
 
  A) Hong Kong
  B) The United States
  C) Mexico
  D) China


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

rleezy04

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

A


fahad

  • Member
  • Posts: 570
Reply 2 on: Jun 30, 2018
Gracias!

momolu

  • Member
  • Posts: 320
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Anxiety rises as needs are not met. Without resolution, anxiety may lead to frustration, and then, ... Anxiety rises as needs are not met. Without resolution, anxiety may lead to frustration, and then, ...
A typical distillation curve. Heavier molecules evaporate at higher temperatures and contain more ... A typical distillation curve. Heavier molecules evaporate at higher temperatures and contain more ...
How to create a price index to calculate inflation for a basket of goods How to create a price index to calculate inflation for a basket of goods
Lead leaching from electronic waste (e-waste) Lead leaching from electronic waste (e-waste)
Explain how it can be desirable from an intertemporal perspective for a country run a current ... Explain how it can be desirable from an intertemporal perspective for a country run a current ...
Explain the assumptions that must be satisfied in order to validly use the one-way ANOVA ... Explain the assumptions that must be satisfied in order to validly use the one-way ANOVA ...
Video: Types of Shock (Part 2 of 2)

For a complete list of videos, visit our video library