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Under a Pegged Exchange-Rate System,which Does Not Explain Why a Country

Question 145

Multiple Choice

Under a pegged exchange-rate system,which does not explain why a country would have a balance-of-payments deficit?


A) Very high rates of inflation occur domestically
B) Foreigners discriminate against domestic products
C) Technological advance is superior abroad
D) The domestic currency is undervalued relative to other currencies

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