A devaluation with sluggish price adjustment reduces competitiveness and aggregate demand.
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Q163: In an economy with a fixed exchange
Q164: When the central bank sells foreign exchange
Q165: The adoption of a fixed exchange rate
Q166: In an open economy with a fixed
Q167: In the short run, fiscal policy is
Q169: In the long run, devaluation is likely
Q170: Under flexible exchange rates, monetary policy is
Q171: Fiscal policy is a stronger demand management
Q172: Under floating exchange rates, fiscal expansion induces
Q173: What is a fixed exchange rate policy?
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