In Figure 3. 2 A, consider an officially declared ...
In Figure 3. 2 A, consider an officially declared “par value” is $2.00 per pound, its market-clearing rate is$1.60 per pound. British officials have announced that they will support the pound at 1 percent below par(about $1.98)and the dollar at 1 percent above par(about $2.02. In Figure 3.2A, the official are forced to make good on this pledge by officially intervening in the foreign exchange market: buying £50 billion, and ()。
A、buying $99 billion (equal to £ 50 billion times $1. 98 per pound)
B、selling $99 billion (equal to £ 50 billion times $1. 98 per pound)……
C、buying 50 billion dollars
D、selling 50 billion dollars