Please give me a both answer 17. With imperfect asset substitutability, sterilized purchases of foreign exchange can cause thehome currency toand sterilized sales of foreign exchange cause the home currency toA) depreciate; appreciateB) appreciate; depreciateC) depreciate; depreciateD) appreciate; appreciateAnswer: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 standingready 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 termsof 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:

"Since you have asked multiple questions, we will solve first question for you .. If you want any…

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:

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:

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 5PA

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Question

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:

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