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Which of the following mechanisms cannot be adopted by a country to defend a fixed exchange rate? A.The government can impose a form of exchange
Which of the following mechanisms cannot be adopted by a country to defend a fixed exchange rate?
A.The government can impose a form of exchange control.
B.The government can allow the currency to self-adjust and the resulting market rate will be equal to the intended rate in the fixed exchange rate regime.
C.The government can buy or sell foreign currency in order to influence the actual exchange rate.
D.The government can alter domestic interest rates in order to influence short-term capital flows.
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