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13.) A weak peso is most likely to cause a) added employment and inflation in Mexico b) less unemployment but more inflation in Mexico c)

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13.) A weak peso is most likely to cause a) added employment and inflation in Mexico b) less unemployment but more inflation in Mexico c) more unemployment but less inflation in Mexico d) less unemployment and less inflation in Mexico 14.) Which of the following produced a valuable lesson about exchange-rate stability and target- zone arrangements? a) European Monetary System b) European Community c) European Common Market d) European Union 15.) Managed floats do NOT fall into which of the following categories of central bank intervention? a) smoothing out daily fluctuations b) leaning against the wind c) unofficial pegging d) letting market forces set exchange rates

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