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If Thailand wants to maintain a fixed exchange rate of 1 baht per euro, it should euros in the foreign exchange market. To be successful,
If Thailand wants to maintain a fixed exchange rate of 1 baht per euro, it should euros in the foreign exchange market. To be successful, this policy would have to euros by billion euros at any given exchange rate. If investors believe the baht is going to be as a result of the change in demand, a speculative attack may occur. True or False: In the event of a successful speculative attack, Thai businesses tend to suffer because their foreign debt will now cost more to repay
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