Under a fixed exchange rate system,if an appreciation in the value of a country's currency develops,the monetary authorities must intervene by ________.

Question

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Under a fixed exchange rate system, if a country's currency begins to appreciate, the monetary authorities must intervene to maintain the fixed rate. They do this by buying foreign exchange, which increases the supply of their own currency in the foreign exchange market, thereby counteracting the appreciation.

Under a Fixed Exchange Rate System,if an Appreciation in the Value