n chapter 11, "International Economics," of Naked Economics, Charles Wheelan discusses international exchange rates, how these are determined, and how exchange rates impact the economy. Of the statements below, Wheelan includes all of them in his discussion of the value of the British pound (the Briish currency) in 1992, EXCEPT for this one. Which of the below statements does the NE chapter on "International Economics" NOT include? (What does this chapter NOT say?) Group of answer choices The international exchange rate for the British pound (or any other currency) in the international exchange rates market is determined by demand for that currency relative to its supply. By increasing real interest rates to prop up the British pounds the British government would also be boosting the British economy which was in a state of economic recession at that time. To prop up (increase) the exchange rate for the British pound the British government could use monetary policy and increase real inerest rates. The higher interest rates on British bonds would make them more interesting to foreign investors who would need to get more British pounds to purchase British bonds - thus increasing the demand for the British pound. To prop up (increase) the exchange rate of the British pound the British governement could use its reserves of foreign curencies to purchase British pounds, thus directly increasing the demand for the British pound.
n chapter 11, "
Group of answer choices
The international exchange rate for the British pound (or any other currency) in the international exchange rates market is determined by demand for that currency relative to its supply.
By increasing real interest rates to prop up the British pounds the British government would also be boosting the British economy which was in a state of economic recession at that time.
To prop up (increase) the exchange rate for the British pound the British government could use
To prop up (increase) the exchange rate of the British pound the British governement could use its reserves of foreign curencies to purchase British pounds, thus directly increasing the demand for the British pound.
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