The Government of Ambria Generally Does Not Interfere in the Value

question 23

Multiple Choice

The government of Ambria generally does not interfere in the value of the nation's currency. However, recently when the nation faced a severe financial crisis leading to its currency being depreciated to a great extent, the government decided to explicitly intervene by increasing the supply of money. In this scenario, the Ambrian government can be said to be engaging in a _____.

• A) managed float
• B) clean float
• C) fixed float
• D) spreader float

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