If an economy has a flexible exchange rate and it chooses to issue 10 million in bonds, what will happen according to the Monetary approach?
A) It will have to allow its currency to appreciate.
B) It will have to allow its currency to depreciate.
C) It will have to decrease its foreign exchange reserves.
D) It will have to increase its foreign exchange reserves.
Question 2
The rate of natural increase in the population of developing countries is most correlated with
(a) advances in developed country technology
(b) increases in developing country income
(c) an increase in the fertility rate
(d) all of the above.
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