If a Country Wants to Keep the Value of Its

Multiple Choice

If a country wants to keep the value of its currency fixed, then its central bank should

A) sell domestic goods when there is an increase in the supply of its domestic currency.
B) buy domestic goods when there is an increase in the supply of its domestic currency.
C) sell its domestic currency when there is an increase in the supply of that currency.
D) buy its domestic currency when there is an increase in the supply of that currency.