Question
If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange
If the central bank does not purchase foreign assets when output increases but
instead holds the money stock constant, can it still keep the exchange rate fixed? Please
explain with the aid of a combined figure of the foreign exchange market and the
domestic money market.
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
