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Suppose that Econland adopts a fixed exchange-rate system and pegs the value of its peso to the U.S. dollar. If people's demand for pesos increases in the foreign exchange markets, then
Econland's foreign-exchange reserves will
Hemostat
A type of forceps.
Contamination
The presence of an unwanted substance or microorganism in a material, environment, or product, posing risk or harm.
Forceps
A hand-held, hinged instrument used in medical procedures for grasping and holding objects.
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