Under a Fixed Exchange Rate System,a Balance of Payments Deficit

Multiple Choice

Under a fixed exchange rate system,a balance of payments deficit may:

A) decrease the country's money supply if there is a non-sterilized central bank intervention.
B) decrease the country's money supply if there is a sterilized central bank intervention.
C) increase the country's money supply if there is a non-sterilized central bank intervention.
D) increase the country's money supply if there is a sterilized central bank intervention.