3080EconomicsMedium
Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will ________ and ________?
Abuy foreign exchange, sell domestic currency
Bbuy foreign exchange buy domestic currency
Csell foreign exchange sell domestic currency
Dsell foreign exchange buy domestic currency
Correct answer
D. sell foreign exchange buy domestic currency
Explanation
The correct answer is sell foreign exchange buy domestic currency.