Under a fixed-rate system,which of the following four alternatives to devaluation is most likely to succeed?
A)foreign borrowing
B)austerity
C)wage and price controls
D)exchange controls

Question

Quizplus · Accepted Answer

Austerity is most likely to succeed as it involves reducing government deficits and debt accumulation, which can help stabilize the economy without altering the fixed exchange rate.

Under a Fixed-Rate System,which of the Following Four Alternatives to Devaluation