A country must adjust its economy, to maintain an exchange rate, when it is using:
A)fiscal policy.
B)flexible exchange rates.
C)monetary policy.
D)fixed exchange rates.

Question

Quizplus · Accepted Answer

A country must adjust its economy to maintain a fixed exchange rate. This often involves using monetary policy tools to adjust the supply of currency to keep the exchange rate stable against a specific foreign currency or basket of currencies.

A Country Must Adjust Its Economy, to Maintain an Exchange