Which one of the following is a disadvantage of a fixed exchange rate system:

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In a fixed exchange rate system, the government commits to maintaining a certain exchange rate between its currency and other currencies. However, if the economic conditions change, the government may find it difficult to maintain the fixed exchange rate causing the value of the currency to change. This makes it a potential disadvantage of a fixed exchange rate system. A) is a potential advantage for importers, B) is not necessarily true, and D) is also a potential advantage for exporters.

Which One of the Following Is a Disadvantage of a Fixed