The government of a country sets its long-run exchange rate and intervenes regularly in the foreign exchange market to keep the exchange rate at its fixed level.The country is most likely to have a ________.

Question

Quizplus · Accepted Answer

The government of a country that sets its long-run exchange rate and intervenes regularly in the foreign exchange market to maintain that fixed level is most likely operating under a fixed exchange rate system.

The Government of a Country Sets Its Long-Run Exchange Rate