To maintain a fixed-exchange-rate system, if the exchange rate (foreign currency/local currency) moves below the fixed-exchange-rate level, then the central bank must:
A)buy foreign currency.
B)sell foreign currency from reserves.
C)raise taxes.
D)decrease government spending.

Question

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The Answer of To maintain a fixed-exchange-rate system, if the exchange rate (foreign currency/local currency) moves below the fixed-exchange-rate level, then the central bank must:
A)buy foreign currency.
B)sell foreign currency from reserves.
C)raise taxes.
D)decrease government spending.

To Maintain a Fixed-Exchange-Rate System, If the Exchange Rate (Foreign