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Symmetric shocks pose fewer problems for nations linked by fixed exchange rates to a base currency. This is because Select one: when there are symmetric
Symmetric shocks pose fewer problems for nations linked by fixed exchange rates to a base currency. This is because
Select one:
when there are symmetric shocks, the home nation unlinks its exchange rate from the base.
there are common problems for these countries, so the economic policy taken by the base currency nation is beneficial for both nations.
the base currency nation can just do nothing, and the issue will resolve itself.
it gives the nation maintaining the peg more autonomy to deal with financial crises.
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