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Which of the Following Is a Benefit of a fiXed

Question 48

Multiple Choice

Which of the following is a benefit of a fixed exchange rate regime?


A) Fixed exchange rates can have a strong disciplinary effect on domestic inflation.
B) Countries that have a fixed exchange rate have a higher level of GDP than countries that
C) Fixed exchange rates allow a gradual adjustment in the value of the exchange rate.
D) Under fixed exchange rate regimes, the balance of payments always equals zero.

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