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In a Fixed Exchange Rate System, the Center Country, to Whose

Question 58

Multiple Choice

In a fixed exchange rate system, the center country, to whose currency the other countries peg their exchange rate, will:


A) find it difficult to conduct autonomous monetary policy.
B) find it difficult to conduct autonomous fiscal policy.
C) easily implement monetary and fiscal policy to suit its economy.
D) defer to advice from other countries in conducting its domestic policy.

Correct Answer:

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