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If the United States Decided to Fix Its Exchange Rate

Question 138

Multiple Choice

If the United States decided to fix its exchange rate with Japan, this would


A) require the U.S. to fix its exchange rate with all other currencies.
B) ensure that the U.S. dollar would always appreciate against the yen.
C) prevent the U.S. from having a trade deficit with Japan.
D) cause the U.S. government to become the dollar-yen foreign exchange market.

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