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If the Central Bank Does Not Purchase Foreign Assets When

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If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at ? Please explain with the aid of a figure. ? Please explain with the aid of a figure.

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blured image No, the rise in output leads to an exce...

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