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  3. Study Set
    Macroeconomics Study Set 11
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    Exam 19: Output, the Interest Rate, and the Exchange Rate
  5. Question
    Under a Fixed Exchange Rate Regime,the Central Bank Must Act
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Under a Fixed Exchange Rate Regime,the Central Bank Must Act

Question 3

Question 3

Multiple Choice

Under a fixed exchange rate regime,the central bank must act to keep


A) P = P*.
B) the real exchange rate fixed.
C) i = i*.
D) E = 1.
E) none of the above

Correct Answer:

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