68)If Hapolonia has a fixed exchange rate against the Canadian dollar, upward pressure on the Hapolonian currency...

a.Cannot be offset indefinitely because the Hapolonian central bank does not have an unlimited stock of Canadian dollars.

b.Can be offset by the Bank of Canada reducing its supply of Canadian dollars.

c.Can be offset indefinitely by the Hapolonian central bank printing money.

d.Can be offset if the Hapolonian central bank increases its target interest rate.

69)If a variable has a value of x1in year 1 and x2in year 2, then its growth rate is given by...

a.(x2- x1) / x2* 100

b.(x1- x2) / x2* 100

c.x2/ x1* 100

d.(x2- x1) / x1* 100

70)The difference between disinflation and deflation is...

a.Disinflation is when you insult inflation but deflation is when you just take the air out of it.

b.Deflation is when the average price is falling and disinflation is when the average price is rising at a slower rate.

c.Disinflation occurs after an inflationary gap and deflation occurs after a recessionary gap.

d.Deflation is when inflation is falling and disinflation is when the average price is falling.