If two countries have fixed their exchange rates, then they must have similar fiscal policies.

Name: If two countries have fixed their exchange rates, then they must have similar fiscal policies.
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Question

Quizplus · Accepted Answer

Fixed exchange rates do not require countries to have similar fiscal policies; they primarily require the countries to maintain their currency values relative to each other, which can be achieved through various means, including but not limited to similar fiscal policies.

If Two Countries Have Fixed Their Exchange Rates, Then They