The biggest disadvantage of a fixed exchange rate is the Select one: A. increased probability of...

The biggest disadvantage of a fixed exchange rate is the

Select one:

A. increased probability of high inflation.

B. tradeoff between supporting the exchange rate and adjusting the trade balance.

C. tradeoff between supporting the exchange rate and maintaining full employment.

D. increased probability of a trade deficit.

E. tradeoff between supporting the exchange rate and maintaining a balanced budget.

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Expert Solution

Rahul Sunny answered 1 year ago

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