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Question
Under a fixed exchange rate regime, what would be the result if a country rapidly increased its money supply by printing currency?
A. It would lead to increase in the worth of the currency.
B. The prices of imports would become more attractive in the country.
C. The countrys goods would be highly competitive in world markets.
D. Trade surplus in the country would increase.
E. It would lead to price deflation in the country.
Answer
This answer is hidden. It contains 273 characters.
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