When a Group of Nations Adhere to a Strict Fixed

question 104

Multiple Choice

When a group of nations adhere to a strict fixed exchange rate system, then

• A) no country will experience inflation or recession.
• B) each nation loses some control of its monetary policy and its domestic economy.
• C) each nation is able to exercise more control of its fiscal policy and aggregate demand.
• D) each nation is able to exercise more control of its monetary policy and its domestic economy.

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