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Some Governments Intervene in the Foreign Exchange Markets to Intentionally

Question 1

Multiple Choice

Some governments intervene in the foreign exchange markets to intentionally suppress the values of their currencies. Among the reasons why a government keeps its currency undervalued is:


A) the desire to help exporters.
B) the desire to help domestic firms with foreign debt.
C) the desire to make important imports less expensive.
D) the desire to make it less expensive for domestic citizens to acquire foreign assets.
E) None of the above.

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