Which of the following is true of fixed exchange rates?
A) A country's government may need to buy or sell its own currency in foreign exchange markets to maintain a fixed exchange rate.
B) Having a fixed exchange rate means that the exchange rate is fixed at the market equilibrium for its foreign exchange market.
C) Most major economies of the world have fixed exchange rates.
D) Fixed exchange rates are very responsive to changing conditions in an economy.
Correct Answer:
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