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

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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: 9780618992676

4th Edition

Authors: William Boyes , Michael Melvin

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