Under a fixed exchange rate regime, if a country has an overvalued exchange rate,then its central bank's attempt to keep its currency from will result in aof international reserves.a) appreciating: gainb) depreciating: gainc) depreciating; lossd) appreciating: loss

International reserves are any sort of hold reserves, which national banks can pass among…

Answered: of international reserves. a)…

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of international reserves. a) appreciating: gain b) depreciating: gain c) depreciating; loss

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Under a fixed exchange rate regime, if a country has an overvalued exchange rate,
then its central bank's attempt to keep its currency from will result in a
of international reserves.
a) appreciating: gain
b) depreciating: gain
c) depreciating; loss
d) appreciating: loss

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