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Under a System of Fixed Exchange Rates,if the Exchange Rate

Question 33

Multiple Choice

Under a system of fixed exchange rates,if the exchange rate of a country is overvalued,then its central bank's effort to prevent the currency from ______ will lead to a (an) ______.


A) depreciating; increase in international reserves
B) depreciating; decrease in international reserves
C) appreciating; increase in international reserves
D) appreciating; decrease in international reserves

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