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Question 8: Which of the following two statements is correct? S1: When the currency of a country depreciates relative to other currencies, the country will
Question 8: Which of the following two statements is correct? S1: When the currency of a country depreciates relative to other currencies, the country will likely export more of its goods abroad. S2: A central bank intervening in the FX market with the goal of propping up (increasing the value of) its currency will decrease its foreign currency reserves. S1 is correct but S2 is false Both statements are false S2 is correct but S1 is false Both statements are correct
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