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PLEASE HELP ME EXPLAIN CORRECT ANSWERS OF THESE QUESTIONS: Suppose there are two countries that decide to peg the exchange rate at its current rate,
PLEASE HELP ME EXPLAIN CORRECT ANSWERS OF THESE QUESTIONS:
Suppose there are two countries that decide to peg the exchange rate at its current rate, which of the following must be true in the short run? Select one: O O O a. The interest rates must be equal in the two countries. b. The real exchange rates between the two countries will be equal. c. Price levels must be equal in the two countries. d. Inflation rates must be equal in the two countries. e. Output growth rates must be equal in the two countries.
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