All of the following are associated with a fixed exchange rate policy except:
A. sacrificing control of the domestic inflation rate.
B. it means importing monetary policy.
C. the need to maintain ample international reserves.
D. higher import prices.
Answer: D
Economics
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A weapons producer sells guns to two countries that are at war with each other. The guns can be produced at a constant marginal cost of $10. The demand for guns from the two countries can be represented as:
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Economics