Which of the Following Statements Is Incorrect

question 26

Multiple Choice

Which of the following statements is incorrect?

• A) A country cannot be open to international capital flows, control its domestic interest rate and fix its exchange rate.
• B) A country can be open to international capital flows and control its own domestic interest rate but it can't fix its exchange rate.
• C) A country can be open to international capital flows, control its domestic interest rate, and fix its exchange rate.
• D) A country can be open to international capital flows and fix its exchange rate but could not also control its own domestic interest rate.

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