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Which of the Following Is a Disadvantage of a Fixed

Question 97

Multiple Choice

Which of the following is a disadvantage of a fixed exchange rate system?


A) Importers are insulated from the risk that the currency will appreciate over time.
B) Management of an MNC is less difficult.
C) The government might change the value of the currency.
D) Exporters are insulated from the risk that the currency will depreciate over time.

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