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Although Fixed Exchange Rates Are Desirable for Many Reasons, Nations

Question 11

Multiple Choice

Although fixed exchange rates are desirable for many reasons, nations that adopt fixed exchange rates find that:


A) fixed exchange rates are difficult to abandon once they become established.
B) flexible exchange rates actually offer a nation more stability.
C) the rate is often only successful for a few years before the peg is broken.
D) intergovernmental agreements limit the fixed exchange rates to only a few products.

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