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    Microeconomics Study Set 45
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    Exam 27: The Balance of Payments, Exchange Rates, and Trade Deficits
  5. Question
    To Maintain a Fixed Exchange Rate, the Government Can Use
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To Maintain a Fixed Exchange Rate, the Government Can Use

Question 65

Question 65

Multiple Choice

To maintain a fixed exchange rate, the government can use the following tools, except


A) currency market intervention.
B) controlling the flow of trade through various barriers.
C) rationing of foreign exchange.
D) keeping its level of international reserves strictly fixed.

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