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Under fixed exchange rates, following a positive demand shock a. The government needs to intervene because the appreciation will cause loss of competitiveness of the

Under fixed exchange rates, following a positive demand shock a. The government needs to intervene because the appreciation will cause loss of competitiveness of the domestic products. b. The government needs to intervene because the depreciation will cause loss of competitiveness of the domestic products. c. The government needs to intervene in order to sell domestic currency, affect the money supply, and shift the supply to the right. d. The government needs to intervene in order to sell domestic currency, affect the money supply, and shift the supply to the right and then it needs to strerilize this intervention in order not to cause inflation. e. The government needs to intervene in order to sell domestic currency, affect the money supply, and shift the supply to the right and then it needs to strerilize this intervention by selling domestic bonds. f. A and c

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