A problem with hard pegs and fixed exchange rates is that the exchange rate cannot adjust to changing economics conditions.

Name: A problem with hard pegs and fixed exchange rates is that the exchange rate cannot adjust to changing economics conditions.
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Hard pegs and fixed exchange rates limit a country's ability to adjust its exchange rate in response to changing economic conditions, potentially leading to economic imbalances or the need for significant reserves to maintain the peg.

A Problem with Hard Pegs and Fixed Exchange Rates Is