Question: A fixed exchange rate is one that ________. A fixed exchange rate is achieved ________. a). follows a path determined by the government or the

A fixed exchange rate is one that ________. A fixed exchange rate is achieved ________.

a). follows a path determined by the government or the central bank; by the central bank buying or selling domestic currency in the foreign exchange market

b). is determined by demand and supply in the foreign exchange market; with no direct intervention by the central bank

c). is set by the government or the central bank; by central bank intervention in the foreign exchange market

d). is set by the government or the central bank; by the intervention of market traders in the foreign exchange market

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