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Assuming the free flow of capital across borders, if country A wants to fix its exchange rate with country B. then Multiple Choice O country
Assuming the free flow of capital across borders, if country A wants to fix its exchange rate with country B. then Multiple Choice O country As inflation rate will have to exceed country B's country As monetary policy must be conducted so the inflation rate in country A matches the inflation rate in country B. country As monetary policy will be updated frequently to address domestic issues. the difference between country A's inflation rate and country BS inflation rate must be equal to the policy objective for stable prices
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