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A Fixed Exchange Rate Is Enforced by

Question 177

Multiple Choice

A fixed exchange rate is enforced by


A) national governments, who establish appropriate trade barriers for each country with whom they trade
B) national governments, who manipulate gold reserves appropriately
C) central banks, who buy and sell appropriate currencies
D) the International Monetary Fund, which offers loans to appropriate countries
E) local governments, who manipulate capital reserves appropriately

Correct Answer:

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