If government policymakers intervene in foreign exchange markets to cause the domestic currency to appreciate:

Question

Quizplus · Accepted Answer

When the domestic currency appreciates due to government intervention in foreign exchange markets, it becomes more expensive for foreign buyers to purchase goods and services from domestic exporters. This makes exports less competitive and could lead to a decrease in demand for exports. As a result, this is likely to be harmful to exporters.

If Government Policymakers Intervene in Foreign Exchange Markets to Cause