Under a fixed rate system, a country that followed policies leading to a lower inflation rate than

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Under a fixed rate system, a country that followed policies leading to a lower inflation rate than that experienced by its trading partners would

a.experience a balance of payments deficit

b.restrict the growth of its money supply

c.be forced to buy its currency in the foreign exchange market

d.come under pressure to expand its money supply

Posted Date: May 19, 2024 06:13 PM

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Under a fixed rate system, a country that followed policies leading to a lower inflation rate than

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