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PLS HELP GIMME 1 answer SOS Which of the following is among the usual responses in a fixed exchange rate when there is a shift
PLS HELP GIMME 1 answer SOS
Which of the following is among the usual responses in a fixed exchange rate when there is a shift to the left of the demand curve for foreign currency? Domestic investors are investing more in overseas assets and need more foreign currency. The central bank will reduce the supply of foreign currency in the market by buying more foreign currencies to add to its foreign currency reserves. The supply curve will need to shift right in order to accommodate the reduced demand. The central bank will increase the supply of foreign currency in the market by selling its foreign currency reserves Step by Step Solution
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