With a fixed exchange rate, if there is excess demand for the domestic currency then the central bank will Select one: a.buy domestic currency. b.sell foreign currency. c.buy domestic currency and sell foreign currency. d.sell domestic
With a fixed exchange rate, if there is excess demand for the domestic currency then the central bank will Select one: a.buy domestic currency. b.sell foreign currency. c.buy domestic currency and sell foreign currency. d.sell domestic
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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With a fixed exchange rate, if there is excess demand for the domestic currency then the central bank will
Select one:
a.buy domestic currency.
b.sell foreign currency.
c.buy domestic currency and sell foreign currency.
d.sell domestic currency and buy foreign currency.
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