Multiple Choice
Assume that there is an excess supply of euros in the foreign exchange market. If a fixed exchange rate system exists with the United States, the European Central Bank would have to __________ to prevent the euro from __________.
A) buy excess euros; appreciating
B) buy excess euros; depreciating
C) sell euros; appreciating
D) sell euros; depreciating
Correct Answer:
Verified
Correct Answer:
Verified
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