If Monetary Policy Is Used to Set the Market Equilibrium

Multiple Choice

If monetary policy is used to set the market equilibrium value of the exchange rate equal to the official value, it is no longer available to:

A) stabilize the domestic economy.
B) stabilize the market equilibrium value of the exchange rate.
C) decrease the market equilibrium value of an overvalued currency.
D) increase the market equilibrium value of an overloaded currency.