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1. Under a system of fixed exchange rates, a nation experiencing an excess of imports over exports can try to remedy this situation by: Group

1. Under a system of fixed exchange rates, a nation experiencing an excess of imports over exports can try to remedy this situation by:

Group of answer choices

Applying an expansionary macroeconomic policy to drive prices up and interest rates down.

Adopting tariffs and quotas.

2.

Should nominal interest rates be equal across countries? Why or why not?

(hint: use International Fisher Effect to explain)

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