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4.(3 points) A possible drawback of the flexible exchange rate regime is that a. it can be expensive to maintain because the central bank must

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4.(3 points) A possible drawback of the flexible exchange rate regime is that a. it can be expensive to maintain because the central bank must have enough foreign exchange reserves to manage its currency value. b. it involves exchange rate uncertainty that may hamper international trade and investment c. it may create an anti-competitive trade environment and potentially leads to a trade war. d. none of the options

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