Scenario: Suppose India borrows $10,000 from the United States at the beginning of 2016. The flexible exchange rate is 50 Indian rupees per dollar.
-Refer to the scenario above.If India wants to repay a lower sum of money to the United States,it should ________.
A) continue to use a flexible exchange rate regime
B) peg the exchange rate to 70 rupees per dollar
C) peg the exchange rate to 60 rupees per dollar
D) peg the exchange rate below 50 rupees per dollar
Correct Answer:
Verified
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