Under fixed exchange rates, domestic asset transactions by the central bank Question content area bottom Part 1 A. can raise output to fullminusemployment level B. can be used to alter the level of foreign reserves but not to affect the state of employment and output. C. can be used to alter the level of foreign reserves and to affect the state of employment and output. D. cannot be used to alter the level of foreign reserves but only to affect the state of employment and output. E. can be used to alter the domestic money supply and the level of foreign reserves