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Which of the Following Statements Is Most Correct

Question 8

Multiple Choice

Which of the following statements is most correct?


A) A central bank can select between a fixed exchange rate and an independent inflation policy provided fiscal policy cooperates
B) A central bank cannot have both a fixed exchange rate and an independent inflation policy
C) The central banks of most industrialized countries focus on fixed exchange rates
D) While most central banks of industrialized countries favor fixing exchange rates, their primary concern is on domestic inflation

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