Monetary base and appreciate currency

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True or false question and give reason why choose true or false;

1. When a central bank sells foreign exchange they decrease their monetary base and appreciate their currency.

2. Fixed exchange rates not tied to a commodity (e.g., gold) are extremely stable and generally long-lived.

3. If the dollar is "strong" it means we have a hard time selling our exports.

4. If you were going to travel abroad (from the U.S.) you would want the dollar to be depreciating in value.

5. If you had investments in foreign businesses and wanted to cash out these investments and convert the funds to dollars, you'd want the dollar to be depreciating in value.

Reference no: EM131157830

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