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A small country imports most of all its consumption goods from overseas: 70% of them are from the US and 30% from China. If the
A small country imports most of all its consumption goods from overseas: 70% of them are from the US and 30% from China. If the country wants to minimise inflation caused by exchange rate fluctuation, then it should _____________.
let its currency to freely float
peg its currency against the Chinese yuan
peg its currency against a basket of currencies that includes both the US$ and Chinese yuan
Unknown -- because we do not know which countries are its main export destinations.
peg its currency against the US dollar
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