The government receives a U.S. dollar loan and exchanges it for local currency at the central bank so it can paypublic sector salaries in local currency.Select one:O a. money supply increase, money demand decrease and interest rate unchangedO b. money supply decrease, money demand unchanged, interest rate increaseOc.money supply increase, money demand increase, interest rate decreaseO d. money supply increase, money demand unchanged, interest rate decreasee. money supply decrease, money demand decrease, interest rate increase How does a real appreciation affect the quantities of imports and exports?Select one:O a. Imports rise; exports rise.O b. Imports fall; exports fall.O c. Imports rise; exports fall.O d. Imports rise; exports are unaffected.O e. Imports fall; exports rise.

The increase in dollar deposit in bank increases the reserve of bank ie creating more money supply…

How does a real appreciation affect the quantities of imports and exports? Select one: O a. Imports rise; exports rise. O b. Imports fall; exports fall. O c. Imports rise; exports fall. O d. Imports rise; exports are unaffected. O e. Imports fall; exports rise.

How does a real appreciation affect the quantities of imports and exports? Select one: O a. Imports rise; exports rise. O b. Imports fall; exports fall. O c. Imports rise; exports fall. O d. Imports rise; exports are unaffected. O e. Imports fall; exports rise.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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