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If a Central Bank Engages in an Unsterilized Foreign-Exchange Intervention

question 61

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If a central bank engages in an unsterilized foreign-exchange intervention with the intention of raising the foreign-exchange value of its currency,

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Definitions:

Exchange

The promise of rewards to persuade another person to cooperate.

Coalition Building

Gathering the support of others as a reason for another person to agree to a request.

Assertiveness

The use of demands or threats to persuade someone to carry out a task.

Referent Power

A form of influence derived from the admiration one has for an individual, leading to a desire to emulate or gain approval from that person.

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