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f a country wants to set its own interest rate that differs from the foreign interest rate (independent monetary policy) and simultaneously have a fixed
f a country wants to set its own interest rate that differs from the foreign interest rate (independent monetary policy) and simultaneously have a fixed exchange rate then, according to our model, (a) the exchange rate must be flexible. (b) money supply should be fixed over time. (c) domestic interest rates should be fixed over time. (d) international capital mobility must be restricted. (e) the price level should be fixed over time
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