Under a fixed exchange rate regime,if a country has an ________ exchange rate,then its central bank's attempt to keep its currency from appreciating will result in a ________ of international reserves.

Question

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Under a fixed exchange rate regime, if a country has an undervalued exchange rate, its central bank will buy its own currency to prevent it from appreciating, which leads to a gain in international reserves as it sells foreign currency to buy local currency.

Under a Fixed Exchange Rate Regime,if a Country Has an ________