)
A monetary expansion ________ stock prices due to a decrease in the
________ and an increase  
in
the ________, everything else held constant.

6. Under a fixed exchange rate regime, if a central bank must intervene to purchase the domestic currency by selling foreign assets, then, like an open market sale, this action _____the monetary base and the money supply, causing the interest rate on domestic assets to ______.

5. Under the Bretton Woods system, the organization assigned the task of making loans to countries that were experiencing balance of payments difficulties is known as the

4. Economists closely follow the current account balance because they believe it can provide information on the future movement of

3. Which of the following does not appear in the current account part of the balance of payments?

2. If the United States has a current account deficit with England of $1 million, and the Bank of England sells $1 million worth of pounds in the foreign exchange market, then England ______$1 million of international reserves and its monetary base ______by $1 million.

1.When the central bank allows the purchase or sale of domestic currency to have an effect on the monetary base, it is called

10.Suppose that the European Central Bank enacts expansionary policy. Everything else held constant, this will cause the demand for U.S. assets to______and the U.S. dollar to .

9. in the domestic interest rate causes the demand for domestic assets to shift to the and the domestic currency to appreciate, everything else held constant.

8. A decrease in the domestic interest rate causes the demand for domestic assets to shift to the ______ and the domestic currency to ______, everything else held constant.

7. When Americans or foreigners expect the return on dollar assets to be high relative to the return on foreign assets, there is a demand for dollar assets and a correspondingly demand for foreign assets.