Question: If the goal were to decrease the value of a country's currency - to fight an appreciation of the domestic currency in exchange for foreign

  • If the goal were to decrease the value of a country's currency - to fight an appreciation of the domestic currency in exchange for foreign currency - the central bank would: A. buy its own currency in exchange for foreign currency.
  • B. follow a restrictive monetary policy.
  • C. drive real rates of interest up.
  • D. sell its own currency in exchange for foreign currency.

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