Under a fixed exchange rate system with a high degree of capital mobility,

Name: Under a fixed exchange rate system with a high degree of capital mobility,
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Under a fixed exchange rate system with high capital mobility, international currency speculators can have a significant impact on the interest rate. This is because the central bank must adjust interest rates to maintain the fixed exchange rate, especially in response to speculative attacks or movements of capital.

Under a Fixed Exchange Rate System with a High Degree