An Important Factor in the Choice of an Exchange Rate

Multiple Choice

An important factor in the choice of an exchange rate regime in low-income nations is:

A) the credentials of the finance minister.
B) the extent of liability dollarization, which can cause contractions when the home currency depreciates.
C) how dependent the nation is on imports, which must be financed by external borrowing.
D) the price level and how it affects the interest rate level in the nation.