If a government wants to increase the value of its currency in foreign exchange markets, it can:

Name: If a government wants to increase the value of its currency in foreign exchange markets, it can:
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Question

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Contractionary monetary policy, which involves increasing interest rates and reducing the supply of money, can lead to an appreciation of the currency. Higher interest rates attract foreign investors looking for higher returns, increasing demand for the currency.

If a Government Wants to Increase the Value of Its