If there is a decline in output, to keep the exchange rate fixed, the central bank has to: - 45235

R

Ram Sharma • 193.84K Points
Coach Economic

Q. If there is a decline in output, to keep the exchange rate fixed, the central bank has to:

(A) Purchase foreign assets
(B) Purchase domestic assets.
(C) Sell domestic assets.
(D) Sell foreign assets.

Correct Answer - Option(D)

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