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Business, 28.11.2019 21:31 idk7193

Which of the following is a problem that can result from pegging a country's currency?
a. it can increase inflation due to domestic monetary expansion.
b. it can limit the use of domestic fiscal policies and thus can be recessionary.
c. it can increase transactions costs for businesses that borrow in the currency that the domestic currency is pegged to.
d. if the pegged value is above the market value, there may be a speculative run on the currency.

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Which of the following is a problem that can result from pegging a country's currency?
a. it...
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