When the government fixes its exchange rate
a. it creates an unfavorable balance of trade
b. it creates trade surpluses
c. it does so to allow the exchange rate to reach equilibrium
d. it acts as an arbitrager
e. it is not unlike a government policy to control agricultural prices
E
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"The resources now going into the War on Terrorism and into improved airport security would save more lives if they were invested in medical research." This statement most clearly reflects which of the following?
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