Q
Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?
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A
A. Buy foreign exchange, sell domestic currency
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B
B. Sell foreign exchange buy domestic currency
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C
C. Buy foreign exchange buy domestic currency
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D
D. Sell foreign exchange sell domestic currency
Correct Answer:
B. B. Sell foreign exchange buy domestic currency
