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    Business
  3. Study Set
    Principles of Microeconomics
  4. Exam
    Exam 20: Exchange Rates, Balance of Payments, and International Debt
  5. Question
    A What Action Would a Government Take to Keep Its
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A What Action Would a Government Take to Keep Its

Question 169

Question 169

Essay

a. What action would a government take to keep its exchange rate from rising if demand for its currency increases?
b. Why would a government want to keep its exchange rate from rising?

Correct Answer:

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a. It would supply enough of its own cur...

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