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With Fixed Exchange Rates,assume That the Home Currency Becomes Undervalued,that

Question 10

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With fixed exchange rates,assume that the home currency becomes undervalued,that is,above its par value.To maintain the fixed exchange rate,the home country's central bank must


A) sell the home currency and purchasing foreign currencies
B) sell the home currency and sell foreign currencies
C) purchase the home currency and sell foreign currencies
D) purchase the home currency and purchase foreign currencies

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