At the moment, 1 unit of a country’s currency is exchanged for US$1.2. The country wants to fix its exchange rate at US$1.4. Which set of government measures in the foreign exchange market would need to be used to achieve this target?
- Abuying US currency and buying its own currency
- Bbuying US currency and selling its own currency
- Cselling US currency and buying its own currency
- Dselling US currency and selling its own currency