If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at ?
Please explain with the aid of a figure.

Question

If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at  ?
 Please explain with the aid of a figure.

Quizplus · Accepted Answer

The Answer of If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at  ?
 Please explain with the aid of a figure.

If the Central Bank Does Not Purchase Foreign Assets When