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    Exam 14: Macroeconomics in an Open Economy
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    When Exchange Rates Are Not Determined in the Market but Are
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When Exchange Rates Are Not Determined in the Market but Are

Question 239

Question 239

Multiple Choice

When exchange rates are not determined in the market but are instead set by a country's central bank, we say that the country's exchange rate is


A) flexible.
B) fixed.
C) a nominal exchange rate.
D) a real exchange rate.
E) non-convertible.

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