Under a fixed exchange rate, if the central bank has to constantly sell foreign currencies, it should let its domestic currency __and its GDP is likely to _. a. Appreciate; improve O b. Depreciate; worsen O c. Depreciate; improve O d. Appreciate; worsen

Under a fixed exchange rate, if the central bank has to constantly sell foreign currencies, it should let its domestic currency __and its GDP is likely to _. a. Appreciate; improve O b. Depreciate; worsen O c. Depreciate; improve O d. Appreciate; worsen

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, if the central bank has to constantly sell foreign currencies, it
should let its domestic currency
and its GDP is likely to
a. Appreciate; improve
b. Depreciate; worsen
O c. Depreciate; improve
O d. Appreciate; worsen

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