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Question 2 (2 points) Which of the following methods would the central bank not use to keep the exchange value of its currency fixed? O

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Question 2 (2 points) Which of the following methods would the central bank not use to keep the exchange value of its currency fixed? O It would sell its own currency for foreign reserves when domestic credit contracted. It would ensure that the domestic money supply stayed constant to maintain uncovered interest and PPP. O It would purchase its own currency for foreign reserves when the domestic credit expanded. It would ensure that the domestic money supply increased to maintain PPP. Question 3 (2 points) Which of the following occurs during a default crisis

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