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Under fixed exchange rates, domestic asset transactions by the central bank

Chako

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8 years ago

Under fixed exchange rates, domestic asset transactions by the central bank

Under fixed exchange rates, domestic asset transactions by the central bank
A) can raise output to full-employment level.
B) can be used to alter the domestic money supply and the level of foreign reserves.
C) can be used to alter the level of foreign reserves and to affect the state of employment and output.
D) cannot be used to alter the level of foreign reserves but only to affect the state of employment and output.
E) can be used to alter the level of foreign reserves but not to affect the state of employment and output.

Textbook

International Economics: Theory and Policy

Edition: 10^th

Author: Krugman

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machukian

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Chako Author

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8 years ago

Good answer, thank you

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machukian

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8 years ago

Thanks for the feedback, I'm sure others will appreciate it too

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