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Chako Chako
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8 years ago
A balance of payments crises under fixed exchange rates occurs when
A) forward currency markets undergo high volatility.
B) marginal returns on foreign exchange investments approach zero.
C) a country is in a liquidity trap.
D) a country runs out of foreign reserves.
E) exports and imports expand beyond some point.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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#1
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8 years ago
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Chako Author
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#2
8 years ago
Correct!
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#3
8 years ago
Don't forget to vote my answer as best Nerd Face
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