Which of the following statements would be true if aggregate demand were increasing rapidly?
A) The central bank would need to sell foreign exchange.
B) The central bank would need to buy foreign exchange.
C) The central bank would need to borrow money from the government.
D) The central bank would need to buy government bonds.
E) The central bank would not change policy.
Correct Answer:
Verified
Q29: In an open economy with fixed exchange
Q30: An expansionary fiscal policy:
A) puts upward pressure
Q31: Which of the following is not one
Q32: A contractionary fiscal policy:
A) puts upward pressure
Q33: In an open economy with fixed exchange
Q35: Which of the following is the term
Q36: The benefits of a currency union associated
Q37: A currency union is a good idea
Q38: The Euro began circulating as a currency
Q39: Which country is a member of the
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