If a country wants to prevent its exchange rate from falling, it could:
A)remove restrictions on imports.
B)place restrictions on imports.
C)pursue easier monetary policy.
D)remove any subsidies on exports.

Question

Quizplus · Accepted Answer

Placing restrictions on imports can help prevent a country's exchange rate from falling by reducing the demand for foreign currencies, which is needed to pay for these imports. This can help stabilize or increase the value of the country's own currency.

If a Country Wants to Prevent Its Exchange Rate from Falling