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If the exchange rate is overvalued, then to move the fundamental value to be equal to the official value of the currency the central bank
If the exchange rate is overvalued, then to move the fundamental value to be equal to the official value of the currency the central bank would: O tighten monetary policy which would decrease the demand for the currency and reduce the fundamental value O tighten monetary policy which would increase the demand for the currency and raise the fundamental value O tighten monetary policy which would increase the demand for the currency and reduce the fundamental value O loosen monetary policy which would increase the demand for the currency and raise the fundamental value O loosen monetary policy which would decrease the demand for the currency and reduce the fundamental value
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