Author Question: Under a fixed exchange rate system, the central bank must a. have an unlimited supply of domestic ... (Read 42 times)

DelorasTo · **on:** Jun 30, 2018

Under a fixed exchange rate system, the central bank must

a. have an unlimited supply of domestic currency.
b. have a very large supply of foreign assets.
c. follow a constant money growth rule.
d. allow the money supply to adjust to keep interest rates and exchange rates unchanged.

Question 2

Which of the following factors are important in the determination of growth rates of output in the intermediate run?

a. Variations in the rates of capital formation.
b. Changes in population growth.
c. Changes in money growth.
d. All of the above.
e. None of the above.