Which of the following conditions would make fixed exchange rates relatively unattractive for a nation?
A) high levels of foreign exchange reserves
B) relatively little involvement in global capital markets
C) immobility of labor and sticky wages
D) weak central bank credibility
E) heavy reliance on trade with the country whose currency will be the peg

Question

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The Answer of Which of the following conditions would make fixed exchange rates relatively unattractive for a nation?
A) high levels of foreign exchange reserves
B) relatively little involvement in global capital markets
C) immobility of labor and sticky wages
D) weak central bank credibility
E) heavy reliance on trade with the country whose currency will be the peg

Which of the Following Conditions Would Make Fixed Exchange Rates