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A Small Economy Country Whose GDP Is Heavily Dependent on Trade

Question 3

Multiple Choice
A small economy country whose GDP is heavily dependent on trade with the United States could use a(n) ________ exchange rate regime to minimize the risk to their economy that could arise due to unfavorable changes in the exchange rate.

A small economy country whose GDP is heavily dependent on trade with the United States could use a(n) ________ exchange rate regime to minimize the risk to their economy that could arise due to unfavorable changes in the exchange rate.


A) pegged exchange rate with the United States
B) pegged exchange rate with the Euro
C) independent floating
D) managed float

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