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If a Country Wishes to Raise the Exchange Rate Above

Question 462

Multiple Choice

If a country wishes to raise the exchange rate above its equilibrium value in the foreign exchange market, it will notice:


A) a surplus of its currency at the desired exchange rate.
B) a shortage of its currency at the desired exchange rate.
C) that it can achieve this rate by expanding the money supply.
D) that it must increase the supply of its currency in the foreign exchange market.

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