Author Question: If exchange rates are floating, a contractionary monetary policy in the United States will cause the ... (Read 73 times)

aabwk4

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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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Answer to Question 1

B

Answer to Question 2

C



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