Question 18: (To answer question 18, use your answer from question 17). Then the country most likely will experience: a. an increase in NX due to currency devaluation b. business bankruptcies due to cturency devaluation c. a devaluation of its currency d. all of the above Question 19: What effective fools could the country's authorities use to avoid the effects of question 18? a. Use any avalable foreign resenes b. Raise short-term interest rates to reverse capital outflows c. Impose taxes on capital outfons d. The central bank could barrow additional foreign reserves from other central banks e. all.ef the above Question 20: In the absence of a Central Bank intervention in the forcign exchange market, higher interest tates and the imposition of tariffs on imports, should result to a(in) ......... exchange value of the dollar? a. Increase b. decrease c, remain the same d. you cannot tell Question 21: Get the information from question 20 and try to figure out the impact on the trade balance. a. Increase b. decrease e remain the same d, yot cannot tell Question 22: Under which intemational foreign exchange system would lending U.S. Dollars at an interest rate of l9% and borrowing a forcign currency at l6%, be a very profitable activity? a): Gold Standard b): Brettion Woods c): Fre Float d): Dirty Float e) ab fcosd Question 18: (To answer question 18, use your answer from question 17). Then the country most likely will experience: a. an increase in NX due to currency devaluation b. business bankruptcies due to cturency devaluation c. a devaluation of its currency d. all of the above Question 19: What effective fools could the country's authorities use to avoid the effects of question 18? a. Use any avalable foreign resenes b. Raise short-term interest rates to reverse capital outflows c. Impose taxes on capital outfons d. The central bank could barrow additional foreign reserves from other central banks e. all.ef the above Question 20: In the absence of a Central Bank intervention in the forcign exchange market, higher interest tates and the imposition of tariffs on imports, should result to a(in) ......... exchange value of the dollar? a. Increase b. decrease c, remain the same d. you cannot tell Question 21: Get the information from question 20 and try to figure out the impact on the trade balance. a. Increase b. decrease e remain the same d, yot cannot tell Question 22: Under which intemational foreign exchange system would lending U.S. Dollars at an interest rate of l9% and borrowing a forcign currency at l6%, be a very profitable activity? a): Gold Standard b): Brettion Woods c): Fre Float d): Dirty Float e) ab fcosd