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First, think about an oil-exporting country that fixes its currency to the US dollar. Assuming that global oil prices fell due to demand-side factors, what

First, think about an oil-exporting country that fixes its currency to the US dollar. Assuming that global oil prices fell due to demand-side factors, what do you expect would happen to the currency of the oil-exporting currency had it not fixed its currency? If it fixes the currency by direct intervention in the foreign exchange market, what would it buy? What would it sell? [1 line]

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