In a fixed exchange rate system, the managerial duties of an MNC are less difficult. Which of the following will most likely not create a problem for MNCs under a fixed exchange rate system (assume the MNC has payables and receivables denominated in foreign currencies)?

a. The local government devalues the local currency.

b. The local government revalues the local currency.

c. The local inflation rate increases.

d. All of these choices will cause problems for an MNC.