39. Under fixed exchange rates, following a positive demand shock a. The government needs to intervene because the appreciation will cause loss of competitiveness of the domestic products. b. The government needs to intervene because the depreciation will cause loss of competitiveness of the domestic products. c. The government needs to intervene in order to sell domestic currency, affect the money supply, and shift the supply to the right. d. The government needs to intervene in order to sell domestic currency, affect the money supply, and shift the supply to the right and then it needs to strerilize this intervention in order not to cause inflation. e. The government needs to intervene in order to sell domestic currency, affect the money supply, and shift the supply to the right and then it needs to strerilize this intervention by selling domestic bonds. f. A and c 40. Which of the following is the most accurate a. Under fixed exchange rates to maintain the exchange rate the government needs to conduct sterilized monetary policy to prevent inflationary pressures. b. Under fixed exchange rates the government responds to a positive supply shock by conducting sterilized monetary policy. c. Under fixed exchange rates the government needs to conduct monetary policy to maintain the exchange rate but needs not to sterilize it as this will be proved inefficient in maintaining the exchange rate. d. Under fixed exchange rates the government needs to conduct monetary policy to maintain the exchange rate but needs not to sterilize it as this will be proved inefficient in maintaining inflation. e. A and c f. None of the abov