A country that wants to increase its exchange rate to a higher level than the market exchange rate dictates would most likely adopt:

Question

Quizplus · Accepted Answer

A country aiming to increase its exchange rate can do so by adopting a contractionary monetary policy. This policy typically involves increasing interest rates, which can attract foreign capital due to the higher returns on investments in that country. As demand for the country's currency increases to invest, the exchange rate will rise.

A Country That Wants to Increase Its Exchange Rate to a Higher