MCQOPTIONS
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| 1. |
Under a pegged exchange rate system which does not explain why a country would have a balance of payments deficit ? |
| A. | very high rates of inflation occur domestically |
| B. | foreigners discriminate against domestic products |
| C. | technological advance is superior abroad |
| D. | the domestic currency is undervalued relative to other currencies |
| Answer» E. | |