Which of the Following Will NOT Result from an Unsterilized

question 9

Multiple Choice

Which of the following will NOT result from an unsterilized intervention in which the central bank sells foreign assets to purchase domestic currency?

• A)Domestic interest rates will rise.
• B)The foreign-exchange value of the domestic currency will rise.
• C)The central bank will experience a decrease in international reserves.
• D)The domestic money supply will rise.

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