A country with fixed exchange rates often faces constraints on growth.

Name: A country with fixed exchange rates often faces constraints on growth.
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Question

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Fixed exchange rates limit a country's ability to adjust to economic shocks and can lead to imbalances in trade and investment, which can hinder economic growth. Additionally, maintaining a fixed exchange rate often requires implementing policies such as tight monetary and fiscal policies that can also constrain growth.

A Country with Fixed Exchange Rates Often Faces Constraints on Growth