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Question
Under a fixed exchange rate regime, if a central bank must intervene to purchase the domestic currency by selling foreign assets, then, like an open market sale, this action ________ the monetary base and the money supply, causing the interest rate on domestic assets to ________.A) increases; rise
B) increases; fall
C) reduces; rise
D) reduces; fall
Answer
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Related questions
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Q:
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Q:
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A. increase; increase
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Q:
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