17. With imperfect asset substitutability, sterilized purchases of foreign exchange can cause the home currency to and sterilized sales of foreign exchange cause the home currency to A) depreciate; appreciate B) appreciate; depreciate C) depreciate; depreciate D) appreciate; appreciate Answer:

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Please give me a both answer 

17. With imperfect asset substitutability, sterilized purchases of foreign exchange can cause the
home currency to
and sterilized sales of foreign exchange cause the home currency to
A) depreciate; appreciate
B) appreciate; depreciate
C) depreciate; depreciate
D) appreciate; appreciate
Answer:
18. Which of the following statements is TRUE?
A) Under a gold standard, each country fixes the price of its currency in terms of gold by standing
ready to trade domestic currency for gold whenever necessary to defend the official price.
B) Under a gold standard, each country is not responsible for pegging its currency's price in terms
of the official international reserve asset, gold.
C) Under a gold standard, countries with limited gold reserves cannot participate.
D) Under a gold standard, all countries sets the same price of its currency in terms of gold.
Answer:
Transcribed Image Text:17. With imperfect asset substitutability, sterilized purchases of foreign exchange can cause the home currency to and sterilized sales of foreign exchange cause the home currency to A) depreciate; appreciate B) appreciate; depreciate C) depreciate; depreciate D) appreciate; appreciate Answer: 18. Which of the following statements is TRUE? A) Under a gold standard, each country fixes the price of its currency in terms of gold by standing ready to trade domestic currency for gold whenever necessary to defend the official price. B) Under a gold standard, each country is not responsible for pegging its currency's price in terms of the official international reserve asset, gold. C) Under a gold standard, countries with limited gold reserves cannot participate. D) Under a gold standard, all countries sets the same price of its currency in terms of gold. Answer:
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