Author Question: When an exchange rate is established as a fixed peg, active intervention may be required to maintain ... (Read 46 times)

ishan · **on:** Jun 30, 2018

When an exchange rate is established as a fixed peg, active intervention may be required to maintain the target-pegged rate.
a. True
b. False
Indicate whether the statement is true or false

Question 2

A decrease in foreign demand for U.S. exports will ____ the demand for U.S. dollars and cause the U.S. dollar to ____ in value.
a. increase; appreciate
b. increase; depreciate
c. decrease; appreciate
d. decrease; depreciate