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QUESTION 15 Suppose Azerbaijan fixes their currency, the manat, to the dollar. In response to accelerating domestic growth, their central bank must perform __.__ to

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QUESTION 15 Suppose Azerbaijan fixes their currency, the manat, to the dollar. In response to accelerating domestic growth, their central bank must perform __.__ to sterilize such a goods market shock." open market purchases open market sales expansionary fiscal policy " contractionary fiscal policy QUESTION 16 f a country's central bank decides to pursue a fixed exchange rate system they must necessarily forego the use of _for offsetting the domestic business cycle. fiscal policy tax policy monetary policy trade policy QUESTION 17 A currency crisis is the potential result of an unsustainable fixed exchange rate regime. True False QUESTION 18 All other things the same, a fixed exchange rate system will_ increase the monetary policy multiplier " decrease the monetary policy multiplier increase the government expenditure multiplier ` decrease the government expenditure multiplier QUESTION 19 "A currency crisis is characterized by a sharp, rapid_ of a currency which will prompt foreign savings to appreciation ; flow in appreciation ; flow out depreciation ; flow in depreciation ; flow out

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