question archive If a country can achieve foreign exchange equilibrium (i
Subject:EconomicsPrice:2.86 Bought3
If a country can achieve foreign exchange equilibrium (i.e. demand for equals supply of foreign currency) without the Central Bank buying or selling foreign currencies, the country is
a) using a Flexible Exchange Rate system.
b) using a Fixed Exchange Rate system.
c) said to have twin deficits.
d) said to be using Purchasing Power Parity.
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