8. A speculative attack &a. cannot occur if central banks maintain a fixed exchange rate. &b.cannot occur

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8. A speculative attack

&a. cannot occur if central banks maintain a fixed exchange rate.

&b.cannot occur if exchange rates are allowed to float.

&c. is more likely to occur if the domestic currency is appreciating in value.

&d. can force a central bank to revalue its currency.

&e. can be precipitated by an unprecedented increase in the demand for domestic goods and services.

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Fundamentals Of Economics

ISBN: 9781133956105,9781285531847

6th Edition

Authors: William Boyes, Michael Melvin

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