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The Nation of XYZ wants to peg its currency to the dollar. Policy makers want to...

The Nation of XYZ wants to peg its currency to the dollar. Policy makers want to have freedom of monetary policy. What must XYZ do to achieve both these goals??

A.impose higher tarrifs
B.impose capital controls
C.apply for an exemption with the Bank for International Settlements
D.have the central bank dedicated to defending the exchange rate
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Answer #1

TEST Pa is currency to dollar means a country wants to maintain a value for its currency at a fixed exchange rate to dollar.

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