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Scenario: Gizmovia II
The Republic of Gizmovia wants to maintain the exchange rate of its currency, the gizmo, at $0.50, but the current exchange rate for the gizmo is $0.75.
-(Scenario: Gizmovia II) Look at the scenario Gizmovia II. If Gizmovia uses foreign exchange controls, it should require licenses to _____ gizmos and _____ dollars.

Question

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Gizmovia wants to maintain the exchange rate of its currency at $0.50, but the current exchange rate is $0.75. To do this, Gizmovia can use foreign exchange controls to require licenses to buy gizmos and sell dollars. This will make it more difficult for people to buy gizmos and sell dollars, which will help to keep the exchange rate at $0.50.

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