Which of the following helps to determine a currency's international role as the dominant reserve currency?
A) amount of seigniorage
B) policy goals of national monetary authorities
C) size of the domestic economic activity relative to international trade
D) All of the above
Question 2
A sustained change in the monetary growth rate will
A) immediately affect equilibrium real money balances by raising the money interest rate.
B) eventually affect equilibrium nominal money balances by raising the money interest rate.
C) eventually affect equilibrium real money balances by reducing the money interest rate.
D) eventually affect equilibrium real money balances by raising the real interest rate.
E) eventually affect equilibrium real money balances by raising the money interest rate.
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