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    International Economics Study Set 6
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    Exam 10: Exchange Rates and Exchange Rate Systems
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    A Reason Why Fixed Exchange Rate Systems Might Lower Growth
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A Reason Why Fixed Exchange Rate Systems Might Lower Growth

Question 68

Question 68

Multiple Choice

A reason why fixed exchange rate systems might lower growth is that


A) inflation may be higher.
B) monetary policy cannot be used.
C) they are more risky.
D) they deter international trade.

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