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Question
Which of the following statements is incorrect?A. A country cannot be open to international capital flows, control its domestic interest rate and fix its exchange rate.
B. A country can be open to international capital flows and control its own domestic interest rate but it can't fix its exchange rate.
C. A country can be open to international capital flows, control its domestic interest rate, and fix its exchange rate.
D. A country can be open to international capital flows and fix its exchange rate but could not also control its own domestic interest rate.
Answer
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