Which of the Following Is NOT Among the Pressures Imposed

Multiple Choice

Which of the following is NOT among the pressures imposed by the fixed-rate system on the government of a country that has ongoing international payments deficits?

A) The country's money supply increases substantially resulting in a higher inflation.
B) The country faces a limit on its ability to sustain deficits.
C) If the country cannot sterilize, then its money supply will decrease.
D) The country suffers deterioration in its creditworthiness.