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4. If the central bank is allowing the exchange rate to float freely, then A. They are buying and selling foreign exchange reserves. B. The

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4. If the central bank is allowing the exchange rate to float freely, then A. They are buying and selling foreign exchange reserves. B. The balance of payments must be zero. C. The current account balance must be zero. D. The country can have both a current account and capital account deficit. E. None of the above

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