Question

I don't need an explanation, just the correct answers

(1)	(2)	(3)
Quantity of Libras Demanded (Billions)	Dollar Price of Libras	Quantity of Libras Supplied (Billions)
100	$5	325
200	4	200
300	3	100
400	2	75

The table indicates the dollar price of libras, the currency used in the hypothetical nation of Libra. Assume that a system of freely floating exchange rates is in place. Suppose that Libra decided to import more U.S. products. We would expect the quantity of libras

		demanded at each dollar price to rise and the dollar to depreciate relative to the libra.
		supplied at each dollar price to fall and the dollar to depreciate relative to the libra.
		supplied at each dollar price to rise and the dollar to appreciate relative to the libra.
		demanded at each dollar price to fall and the dollar to appreciate relative to the libra.

Critics of the managed floating exchange rate system argue that it

		is dominated by G-8 nations.
		increased the growth in world trade at too fast a rate.
		is a "nonsystem" with unclear rules.
		puts too much reliance on the adjustable-peg mechanism for stabilizing exchange rates.

To maintain a fixed exchange rate, the government can use the following tools,  except

		currency market intervention.
		controlling the flow of trade through various barriers.
		rationing of foreign exchange.
		keeping its level of international reserves strictly fixed.

(Consider This) Which of the following has been a consequence of China pegging its currency against the U.S. dollar throughout the 2000s?

		China has experienced a large trade deficit in goods with the United States.
		China has experienced a loss of dollar reserves.
		China has experienced strong inflationary pressure, despite sterilization efforts.
		The United States has actively intervened in the foreign exchange market to bring the yuan to a free exchange market equilibrium value.

Which of the following statements is most accurate about the U.S. current account since the Great Recession (the period covering 2009–2015)?

		The current account deficit has grown in absolute terms, but remained relatively constant as a percentage of GDP.
		The current account has remained the same in absolute terms, but fallen as a percentage of GDP.
		The current account deficit has grown in both absolute terms, and as a percentage of GDP.
		The current account has gone from a deficit to a surplus.

Answer 1

Answer 1:

Option C. When there is increase in the import from the foreign currency then the supply of domestic currency increases to convert it into foreign currency to pay for the imports and this leads to appreciation of foreign currency with respect to home currency.

Answer 2:

Option C. Critics of the managed floating exchange rate system argue that it is a "nonsystem" with unclear rules.

Answer 3:

Option D. To maintain a fixed exchange rate, the government can use all the tolls mentioned in the options except keeping its international reserves strictly fixed. Reserves needs to be changed in order to keep exchange rate fixed.

Answer 4:

Option C. China has experienced strong inflationary pressure, despite sterilization efforts due to pegging its currency to dollar.