Author Question: As foreign investors began to sell off investments they had made in Thailand, they traded in their ... (Read 108 times)

luvbio · **on:** Jun 29, 2018

As foreign investors began to sell off investments they had made in Thailand, they traded in their baht for dollars. The result of this was

A) pressure for the value of the baht to rise.
B) an increase in the equilibrium value of the baht.
C) pressure for the value of the baht to decline.
D) a decrease in the supply of the baht in foreign exchange markets.

Question 2

Suppose that the economy is producing above potential GDP and the Fed implements the correct change in monetary policy, but not until after the economy has passed the peak of the boom. Then

A) the Fed's contractionary policy will result in too small of a decrease in GDP.
B) the Fed's expansionary policy will result in too small of a decrease in GDP.
C) the Fed's contractionary policy will result in too large of a decrease in GDP.
D) the Fed's expansionary policy will result in too large of an increase in GDP.