Economics 9708 · AS & A Level · 6.4

6.4 — practice question

A government operating a floating exchange rate wants to promote an increase in the international value of its currency. What action should it take?

  • Alower the level of domestic interest rates
  • Breduce the amount of foreign currency available to its citizens
  • Creduce subsidies to its exporters
  • Dremove trade barriers on imports

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