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please do it in 10 minutes will upvote Question Completion Status: O None of the above QUESTION 17 Suppose a country has a fixed exchange
please do it in 10 minutes will upvote
Question Completion Status: O None of the above QUESTION 17 Suppose a country has a fixed exchange rate with capital mobility. What happens to the level of foreign reserves if domestic money demand falls by 10% and the backing ratio is 25%? Foreign reserves do not fall. Foreign reserves fall by 2.5%. Foreign reserves fall by 25%. Foreign reserves fall by 40%. We do not have enough information QUESTION 18 10 If a country uses a currency board to maintain the credibility of its exchange rate peg, what is the backing ratio? o It will depend on the quantity of money demanded. 125% 50% 100% We do not have enough informationStep by Step Solution
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