If the demand for a domestic currency decreases in a country using a fixed exchange rate system,

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If the demand for a domestic currency decreases in a country using a fixed exchange rate system, what must the central bank do to keep the currency value steady?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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