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If a Central Bank Was to Prevent Its Currency from Appreciating

Question 31

Multiple Choice

If a central bank was to prevent its currency from appreciating, it would likely adopt a (an) ______ monetary policy to ______ the domestic interest rate, thus strengthening its currency.


A) contractionary, decrease
B) contractionary, increase
C) expansionary, decrease
D) expansionary, increase

Correct Answer:

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