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Country P has a fixed exchange rate regime and is experiencing high inflation rates compared to its trading partners. To maintain its fixed exchange rate,
Country P has a fixed exchange rate regime and is experiencing high inflation rates compared to its trading partners. To maintain its fixed exchange rate, what action can Country P's central bank take? Question 16Answer a. Increase government spending b. Print more currency c. Reduce interest rates d. Buy its own currency with its foreign reserves
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