Multiple Choice
An increase in a country's interest rate would necessitate which of the following actions by a central bank that did not want the nominal exchange rate to change?
A) An immediate adoption of exchange controls
B) The engineering of an exchange-rate shock
C) The buying of foreign exchange
D) The selling of foreign exchange
E) banning imports
Correct Answer:

Verified
Correct Answer:
Verified
Q83: Which of the following is related to
Q84: The buying and selling of foreign exchange
Q85: A contractionary fiscal policy:<br>A) puts upward pressure
Q86: A system of fixed exchange rates is
Q87: In an open economy with fixed exchange
Q89: Under a fixed exchange rate system, when
Q90: Under a fixed exchange rate system, intervention
Q91: What is a currency board system? What
Q92: An expansionary monetary policy in an open
Q93: Intervention in the foreign exchange market by