Question
Under a fixed exchange rate regime, if CA=$40 billion and KA= - $55 billion, this implies that this country's central bank is accumulating $95 billion
Under a fixed exchange rate regime, if CA=$40 billion and KA= - $55 billion, this implies that this country's central bank is accumulating $95 billion in foreign exchange reserves. This accumulation of reserves is required; otherwise, this country's currency will face the pressure to appreciate. TRUE OR FALSE? EXPLAIN YOUR ANSWER
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Contemporary Labor Economics
Authors: Campbell R. McConnell, Stanley L. Brue, David Macpherson
11th Edition
1259290602, 1259290603, 978-1259290602
