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Show the impact of a Central Bank (Fed) sterilized intervention to support the value of its currency in the foreign exchange market on its balance
Show the impact of a Central Bank (Fed) sterilized intervention to support the value of its currency in the foreign exchange market on its balance sheet. Assets: Liabilities: What would the overall impact of this sterilized intervention on the monetary base and the money supply be? What would the likely impact of a sterilized intervention on the exchange rate be?
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