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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 monetary policy to bring the exchange rate for the gizmo to $0.50,it should _____ interest rates,which will _____ capital outflows of gizmos.

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Decreasing interest rates will make holding gizmos less attractive, leading to increased capital outflows, which will help depreciate the currency to the desired exchange rate.

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