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Suppose the Mexican government is concerned about the value of its currency. the peso, and decides to introduce a xed exchange rate regime with a
Suppose the Mexican government is concerned about the value of its currency. the peso, and decides to introduce a xed exchange rate regime with a target below the current equilibrium rate. Classify each policy as to whether it would help or hurt Mexico's efforts to lower the exchange rate of the peso. a. get Mexico's central bank to buy more foreign exchange reserves , I). raise Mexico's interest rate through monetary policy - 1:. get Mexico's central bank to sell their foreign exchange reserves - d. introduce restrictions on the ability of foreigners to buy pesos
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