Under a fixed exchange rate regime,if a central bank must intervene to purchase the domestic currency by selling foreign assets,then,like an open market sale,this action ________ the monetary base and the money supply,causing the interest rate on domestic assets to ________.

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When a central bank intervenes to purchase the domestic currency by selling foreign assets under a fixed exchange rate regime, it effectively reduces the monetary base and the money supply, similar to an open market sale. This reduction in the money supply causes the interest rate on domestic assets to rise.

Under a Fixed Exchange Rate Regime,if a Central Bank Must