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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)Refer to Scenario: Gizmovia II.If Gizmovia uses exchange market intervention to decrease the value of its currency to $0.50,it should _____ gizmos and _____ dollars in the foreign exchange market.

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If Gizmovia wants to decrease the value of its currency, it should sell gizmos and buy dollars in the foreign exchange market. This will increase the supply of gizmos and decrease the demand for dollars, which will lead to a decrease in the exchange rate of the gizmo.

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