With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

Related Mcqs:

Which of the following is not involved with fiscal policy ?

A. Income tax B. National insurance C. VAT D. Interest insurance...

If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?

A. fluctuate more than it would do otherwise B. appreciate C. depreciate D. not be affected...

The competitive advantage from a devaluation is likely to be offset by _______ and ________?

A. higher import prices, higher wages increases B. lower export prices, lower imports volumes C. higher import prices, lower export prices D. higher wage increases lower import volumes...

As prices rise. People will want to keep more money as cash and in bank accounts This is called ?

A. real balance effect. B. cash ratio. C. money illusion. D. menu costs of inflation....

A rise in the real exchange rate will ________ the competitiveness of the domestic economy?

A. increase B. reduce C. do nothing to D. None of the above...