In an economy with a fixed exchange rate, an increased demand for foreign goods would increase the supply of the domestic currency. To stop its currency from _______, the government would need to purchase _______currency in the foreign-exchange market.
A) depreciating; foreign
B) depreciating; domestic
C) appreciating; domestic
D) appreciating; foreign

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The Answer of In an economy with a fixed exchange rate, an increased demand for foreign goods would increase the supply of the domestic currency. To stop its currency from _______, the government would need to purchase _______currency in the foreign-exchange market.
A) depreciating; foreign
B) depreciating; domestic
C) appreciating; domestic
D) appreciating; foreign

In an Economy with a Fixed Exchange Rate, an Increased