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    Macroeconomics Study Set 68
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    Exam 21: The Balance of Payments, Exchange Rates, and Trade Deficits
  5. Question
    Explain the Basic Difference in a fiXed (Or Pegged) Exchange
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Explain the Basic Difference in a fiXed (Or Pegged) Exchange

Question 223

Question 223

Essay

Explain the basic difference in a fixed (or pegged) exchange rate policy as opposed to a flexible
exchange rate policy.

Correct Answer:

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With a fixed exchange rate policy, the go...

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