A Cooperative Outcome in a Situation Where One Nation Pegs

Multiple Choice

A cooperative outcome in a situation where one nation pegs to another would be that the:

A) center country abandons its own stabilization policy in favor of the home country.
B) home country absorbs the losses resulting from the stabilization policy in the center country.
C) center country makes concessions, recognizing the impact on the home country, thereby sharing the pain.
D) peg is temporarily abandoned.