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If a country's central bank seeks to stabilize the price level and if real shocks from abroad are ...

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If a country's central bank seeks to stabilize the price level and if real shocks from abroad are ...

If a country's central bank seeks to stabilize the price level and if real shocks from abroad are important, then
A) a flexible exchange rate is preferable to a fixed exchange rate.
B) flexible and fixed exchange rates are equivalent.
C) the central bank will not be able to realize its goal.
D) a fixed exchange rate is preferable to a flexible exchange rate.
E) the central bank should devalue under flexible exchange rates.

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Macroeconomics, Canadian Edition

Edition: 5^th

Author: Williamson

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smitch6 Author

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6 years ago

Correct

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Just got PERFECT on my quiz

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