Multiple Choice
Because sterilized interventions mean offsetting open market operations,there is no impact on the monetary base and the money supply,and therefore a sterilized intervention
A) causes the exchange rate to overshoot in the short run.
B) causes the exchange rate to undershoot in the short run.
C) causes the exchange rate to depreciate in the short run,but has no effect on the exchange rate in the long run.
D) has no effect on the exchange rate.
Correct Answer:
Verified
Correct Answer:
Verified
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