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 164 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
Great answer, keep it coming :)

kjohnson

  • Member
  • Posts: 330
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Apidium may be ancestral to all later higher primates and is reconstructed as looking like a small-b Apidium may be ancestral to all later higher primates and is reconstructed as looking like a small-b
The universal grammar and emergent grammar viewpoint lead to very different scenarios of the evoluti The universal grammar and emergent grammar viewpoint lead to very different scenarios of the evoluti
Higher centers influencing autonomic function. Higher centers influencing autonomic function.
Oil pressure relief valves are spring loaded. The stronger the spring tension, the higher the oil ... Oil pressure relief valves are spring loaded. The stronger the spring tension, the higher the oil ...
E9-23 Prepare income statements Explain the difference in operating income E9-23 Prepare income statements Explain the difference in operating income
Social scientists have not done well at devising theories to explain lovely romantic moments Social scientists have not done well at devising theories to explain lovely romantic moments
Video: Muscle Fatigue and Recovery

For a complete list of videos, visit our video library