A fixed exchange-rate system will work better if countries will cooperate more with one another.

Question

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In a fixed exchange-rate system, the value of a country's currency is tied to the value of another single currency or to a basket of other currencies, or else to another measure of value, such as gold. For such a system to work effectively, it requires a high level of cooperation among participating countries to maintain the fixed rates, including coordination of monetary policies and possibly intervention in currency markets to stabilize exchange rates.

A Fixed Exchange-Rate System Will Work Better If Countries Will