In a noncooperative environment of pegged exchange rates, if the home nation is experiencing high inflation due to excessive demand, it may choose to ______, which would cause______.
A) forgo the pegged exchange rate; extreme depreciation
B) devalue its currency; the foreign nation to suffer deficient demand for its products
C) cut the monetary growth rate; a rise in interest rates
D) revalue its currency; the foreign nation to suffer excessive demand for its products

Question

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The Answer of In a noncooperative environment of pegged exchange rates, if the home nation is experiencing high inflation due to excessive demand, it may choose to ______, which would cause______.
A) forgo the pegged exchange rate; extreme depreciation
B) devalue its currency; the foreign nation to suffer deficient demand for its products
C) cut the monetary growth rate; a rise in interest rates
D) revalue its currency; the foreign nation to suffer excessive demand for its products

In a Noncooperative Environment of Pegged Exchange Rates, If the Home