Multiple Choice
Under a managed float,
A) a central bank allows the forces of supply and demand to determine the exchange rate
B) a nation can have neither a trade deficit nor a trade surplus
C) a nation "pegs" its price level to a foreign currency
D) a nation "pegs" its price level at some fixed value
E) a central bank intervenes in the foreign exchange market to stabilize its exchange rate
Correct Answer:
Verified
Correct Answer:
Verified
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