If Mexico wants to fix the peso to the U.S. dollar in the short run:
A) Mexico's monetary policy must be opposite the U.S. monetary policy.
B) Mexico must adjust its interest rates by the same amount as changes in the federal funds rate.
C) Mexico must ensure its inflation rate is the same as U.S. inflation.
D) population growth in the U.S. and Mexico must be equal.
E) It will never be able to maintain a fixed exchange rate.
Correct Answer:
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