If the equilibrium exchange rate is above the target rate, the government should: I. buy its domestic currency in foreign exchange markets.
II) engage in expansionary monetary policy.
III) restrict the purchase of foreign currencies.

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The Answer of If the equilibrium exchange rate is above the target rate, the government should: I. buy its domestic currency in foreign exchange markets.
II) engage in expansionary monetary policy.
III) restrict the purchase of foreign currencies.

If the Equilibrium Exchange Rate Is Above the Target Rate