Question: 14. Everything else held constant, if a central bank makes an unsterilized of foreign assets, then the domestic money supply will and the domestic currency
14. Everything else held constant, if a central bank makes an unsterilized of foreign assets, then the domestic money supply will and the domestic currency will appreciate. A) purchase; increase B) purchase; decrease C) sale; increase D) sale; decrease 15. If a central bank does not want to allow the domestic currency to appreciate, it will international reserves by selling its currency, thereby the monetary base and increasing the risk of higher inflation. A) lose; decreasing B) lose; increasing C) acquire; decreasing D) acquire; increasing
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