A central bank might attempt to offset an increase in the cost of foreign goods by
A)selling its own currency in the foreign-exchange market.
B)buying its own currency in the foreign-exchange market.
C)lowering domestic interest rates.
D)raising the prices of domestic goods by a similar amount.

Question

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The Answer of A central bank might attempt to offset an increase in the cost of foreign goods by
A)selling its own currency in the foreign-exchange market.
B)buying its own currency in the foreign-exchange market.
C)lowering domestic interest rates.
D)raising the prices of domestic goods by a similar amount.

A Central Bank Might Attempt to Offset an Increase in the Cost