This is not a writing assignment, this is a multiple-choice question Which of the below statements does NOT include international exchange rates, how these are determined, and how exchange rates impact the economy? Group of answer choices By increasing real interest rates to prop up the British pounds the British government would also be boosting the British economy which was in a state of economic recession at that time. To prop up (increase) the exchange rate for the British pound the British government could use monetary policy and increase real interest rates. The higher interest rates on British bonds would make them more interesting to foreign investors who would need to get more British pounds to purchase British bonds - thus increasing the demand for the British pound. To prop up (increase) the exchange rate of the British pound the British government could use its reserves of foreign currencies to purchase British pounds, thus directly increasing the demand for the British pound
This is not a writing assignment, this is a multiple-choice question
Which of the below statements does NOT include international exchange rates, how these are determined, and how exchange rates impact the economy?
Group of answer choices
By increasing real interest rates to prop up the British pounds the British government would also be boosting the British economy which was in a state of economic recession at that time.
To prop up (increase) the exchange rate for the British pound the British government could use
To prop up (increase) the exchange rate of the British pound the British government could use its reserves of foreign currencies to purchase British pounds, thus directly increasing the demand for the British pound.
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