The Pugelovian government is attempting to peg the exchange-rate value of its currency (the pnut, pronounced p'noot)

Question:

The Pugelovian government is attempting to peg the exchange-rate value of its currency (the pnut, pronounced "p'noot") at a rate of three pnuts per U.S. dollar (plus or minus 2 percent). Unfortunately, private market supply and demand is putting downward pressure on the pnut's exchange-rate value. In fact, it appears that, under current market conditions, the would be about 3.5 pnuts per dollar if the government did not defend the pegged rate.
a. How could the Pugelovian government use official intervention in the to defend the pegged How could the Pugelovian government use exchange controls to defend the pegged How could the Pugelovian government use domestic interest rates to defend the pegged Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars... Foreign Exchange Market
The foreign exchange market (also known as forex, FX or the currency market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants are able to buy, sell, exchange and...