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Lost4ever Lost4ever
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6 years ago
What are some reasons that an emerging market country may choose a fixed exchange rate regime?
 
  What will be an ideal response?

Question 2

If the Fed purchases 1 million in securities from the nonbank public, the monetary base will rise by 1 million
 
  A) if the public holds the proceeds as currency.
  B) if the public deposits the proceeds as checkable deposits.
  C) if the public deposits the proceeds with the Treasury in a monetary base account.
  D) whether the public holds the proceeds as currency or deposits them as checkable deposits.

Question 3

Monetary policy can have substantial effects on the economy even when nominal interest rates are very low
 
  A) since real rates are what affects borrowing and spending decisions.
  B) by improving borrower and bank balance sheets.
  C) by reducing transactions costs.
  D) only when the policy is substantial.
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rtstudentrtstudent
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6 years ago
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Lost4ever Author
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#2
6 years ago
Thank you for helping me with this assignment of mine
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