Which of the following statements is (are) correct?
A) Under a fixed exchange rate system,potential conflicts arise between the goals of internal balance and external balance.
B) With a fixed exchange rate system,a central bank has to give up control over domestic interest rates but retains control over inflation.
C) Countries may find that expansionary policies,which might be desired in order to reduce the unemployment rate,may lead to income levels that are too low to balance the trade account and could lead to balance of payments surpluses.
D) Both a and c
E) Both b and c
Correct Answer:
Verified
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A)the lower the
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