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Which of the Following Statements Is (Are)correct

Question 42

Multiple Choice

Which of the following statements is (are) correct?


A) Given a fixed exchange rate system,there is an absence of conflicts between internal and external balance goals
B) Under a fixed exchange rate system,potential conflicts arise between the goals of internal balance and external balance
C) Countries may find that expansionary policies,which might be desired in order to reduce the unemployment rate,lead to income levels that are too high to balance the trade account and could lead to balance of payments problems
D) Both a and c
E) Both b and c

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