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Under a Managed Float Exchange Rate System, the Bank of England

Question 40

Multiple Choice

Under a managed float exchange rate system, the Bank of England may attempt to stimulate the UK economy by ____ the pound. Such an adjustment in the pound's value should ____ the UK demand for products produced by major foreign countries.


A) weakening; increase
B) weakening; decrease
C) strengthening; increase
D) strengthening; decrease

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