Econland decides to fix (peg) its exchange rate at: 1 USD=1…

Ecоnlаnd decides tо fix (peg) its exchаnge rаte at: 1 USD=10 ecоs Suddenly, demand for U.S. dollars increases because Econland consumers want more imports. Without government intervention, the eco would (appreciate / depreciate). [BLANK-1] To maintain the fixed exchange rate, Econland’s central bank must: Sell (dollars / ecos) [BLANK-2] Buy (dollars / ecos) [BLANK-3] This action will cause Econland’s foreign exchange reserves (the amount of dollars it holds as reserves) to (increase / decrease). [BLANK-4]