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If a Country Wants to Keep Its Domestic Currency Overvalued

Question 95

Multiple Choice

If a country wants to keep its domestic currency overvalued against a foreign currency,________.


A) it will buy both the foreign and the domestic currency
B) it will sell both the foreign and the domestic currency
C) it will buy the domestic currency and sell the foreign currency
D) it will buy the foreign currency and sell the domestic currency

Correct Answer:

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