Economics of Macro Issues 7th Edition by Roger LeRoy Miller,Daniel Benjamin

Exercise 3

Sometimes national governments decide that they want their currencies to be more valuable than they currently are. Explain how, if country wants to raise the value of its currency in foreign exchange markets, it might use the following tools to do so:
a. Altering the rate of growth in its money supply, thus changing the current and expected inflation rate
b. Limiting the ability of citizens to invest in foreign nations
c. Imposing tariffs or quotas on imports
d. Subsidizing exports by domestic firms