Which of the following statements is incorrect? O Central banks often consider adjusting a currency's value to influence economic conditions. O If the U.S. central bank wishes to stimulate the economy, it could weaken the dollar. O A weaker dollar could cause U.S. inflation by reducing foreign competition. O Direct intervention occurs when the central bank influences the factors that determine the dollar's value.

Which of the following statements is incorrect? O Central banks often consider adjusting a currency's value to influence economic conditions. O If the U.S. central bank wishes to stimulate the economy, it could weaken the dollar. O A weaker dollar could cause U.S. inflation by reducing foreign competition. O Direct intervention occurs when the central bank influences the factors that determine the dollar's value.

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter19: The International Monetary System: Order Or Disorder

Section: Chapter Questions

Problem 8DQ

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