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Think of the following three markets: the domestic market for goods and services, the domestic asset market, and the global foreign-exchange market. When these central
Think of the following three markets: the domestic market for goods and services, the domestic asset market, and the global foreign-exchange market. When these central banks carry out their announced plans to sell their currencies, in which of these markets will they act? What will they get/buy in return for their sold currencies? Which of the three markets' prices and quantities do these central banks try to strengthen?
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