: an FE curve that is horizontal.There are limits to the ability of monetary authorities to use sterilized intervention in the case of a deficit because:A:the central bank may be unwilling to increase its holdings of foreign currency beyond a certain limit. B:the export level is fixed and it cannot be allowed to drop. C:the pressure from foreign countries to allow the domestic currency to appreciate will lead to large losses. D:the central bank’s ability to constantly obtain foreign currency for the sterilized intervention is constrained.