When a country has "exorbitant privilege," it has the ability to:
A) lend at higher interest rates because there is a low risk that it will default on the loans.
B) maintain constant exchange rates while incurring changes in the current account.
C) borrow at lower interest rates than other countries because assets in its currency are sought.
D) maintain a current account surplus at the same time as a capital account surplus.
Correct Answer:
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