Fixing an exchange rate between two countries makes the most sense when:
A) the countries macroeconomic fluctuations are positively correlated.
B) the countries macroeconomic fluctuations are negatively correlated.
C) the countries' macroeconomic fluctuations are uncorrelated.
D) one country has a lot of international reserves and the other doesn't.
Correct Answer:
Verified
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A)
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Q55: A fixed exchange rate policy:
A) decreases central
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