23 If the central bank has to intervene in the foreign exchange markets to prevent the home currency from appreciating, then its foreign exchange reserves will: A decrease and the domestic money supply will rise. B decrease and the domestic money supply will fall. C increase and the domestic money supply will rise. D increase and the domestic money supply will fall. May I know why the answer is C for this quest ? 25 Which of the following is least likely to lead to an increase in long run economic growth? A An increase in the money supply. B An increase in capital investment expenditure. C An increase in education expenditure. D An increase in research and development expenditure May I know why D is not accepted for this question ? 15 The range of output over which average variable cost falls will be the same as the range over which: A average physical product falls. B average physical product rises. C marginal physical product falls. D marginal physical product rises. May I know why this answer is B ?
