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If a Central Bank Engages in an Unsterilized Foreign-Exchange Intervention

Question 61

Multiple Choice

If a central bank engages in an unsterilized foreign-exchange intervention with the intention of raising the foreign-exchange value of its currency,


A) the central bank's holdings of international reserves will fall.
B) the domestic money supply will rise.
C) domestic interest rates will fall.
D) it will buy foreign assets.

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