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Under a Fixed Exchange Rate System,a Balance of Payments Surplus

Question 55

Multiple Choice
Under a fixed exchange rate system,a balance of payments surplus may:

Under a fixed exchange rate system,a balance of payments surplus may:


A) decrease the country's money supply if there is a non-sterilized central bank intervention.
B) decrease the country's money supply if there is a sterilized central bank intervention.
C) increase the country's money supply if there is a non-sterilized central bank intervention.
D) increase the country's money supply if there is a sterilized central bank intervention.

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