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    Applied International Economics
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    Exam 18: Fixed Exchange Rates and Currency Unions
  5. Question
    Intervention in the Foreign Exchange Market by Selling Foreign Exchange
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Intervention in the Foreign Exchange Market by Selling Foreign Exchange

Question 93

Question 93

Multiple Choice

Intervention in the foreign exchange market by selling foreign exchange causes:


A) the money supply to rise.
B) the money supply to fall.
C) no effect on the money supply.
D) a capital outflow.
E) FDI to decline.

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