A country with fixed exchange rates often faces constraints on growth.

Name: A country with fixed exchange rates often faces constraints on growth.
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When a country fixes its exchange rate, it may not be able to adjust its monetary policies to respond to changes in its own economic conditions, leading to constraints on growth. Additionally, fixed exchange rates can make exports more expensive and imports cheaper, which can harm a country's economy if it relies heavily on exports.

A Country with Fixed Exchange Rates Often Faces Constraints on Growth