Final answer:
A central bank can adjust to a large amount of imports by intervening in the foreign exchange market, raising interest rates, and using open market operations.
Step-by-step explanation:
A central bank has several options to adjust if the anchor country imports a large amount of goods from the domestic country. One way is to intervene in the foreign exchange market by buying the domestic currency and selling the anchor country's currency. This increases the demand for the domestic currency, which in turn strengthens the domestic currency's exchange rate.
Another option is for the central bank to raise interest rates. This attracts foreign investors who are seeking higher returns on their investments, leading to an inflow of foreign capital. This increases the demand for the domestic currency and strengthens its exchange rate.
Lastly, the central bank can use open market operations to reduce the supply of the domestic currency. By selling government bonds, the central bank reduces the amount of money in circulation, leading to a stronger exchange rate for the domestic currency.