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Author Question: Under a fixed exchange rate system, at low domestic real interest rates the demand for domestic ... (Read 74 times)

abc

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on: Jun 30, 2018
Under a fixed exchange rate system, at low domestic real interest rates the demand for domestic currency ________, so the central bank ________ foreign-exchange reserves.
 
  A) increases; acquires
  B) increases; loses
  C) decreases; acquires
  D) decreases; loses

Question 2

The real interest rate can be thought of as
 
  A) the price of current consumption relative to future consumption.
  B) the price of current consumption completely smoothed over a lifetime.
  C) the price of future consumption smoothed completely over a lifetime.
  D) the price of current consumption divided by the price of current saving.


nhea

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

D

Answer to Question 2

A


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