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Question in attached image Answer the following: a} Why is the home interest rate higher under a noncredihle peg than under a credible peg? Explain.

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Answer the following: a} Why is the home interest rate higher under a noncredihle peg than under a credible peg? Explain. b} Is it more costly to maintain a noncredible peg than a credible peg?Explain. c} What the central bank of a country with fixed exchange rate regime has to do to avoid a cu rrency crisis

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