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Author Question: If exchange rates are floating, a contractionary monetary policy in the United States will cause the ... (Read 125 times)

aabwk4

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on: Jun 30, 2018
If exchange rates are floating, a contractionary monetary policy in the United States will cause the dollar to ________ relative to other currencies and cause net capital outflows to ________.
 
  A) appreciate; increase
  B) appreciate; decrease
  C) depreciate; increase
  D) depreciate; decrease

Question 2

Commercial banks limit the adverse selection problem through ________.
 
  A) monitoring
  B) restrictive covenants
  C) screening
  D) moral hazard


kilada

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

C


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aabwk4

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Reply #2 on: Jun 30, 2018
Correct answers!


kilada

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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