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Business, 11.12.2019 17:31 1119diamondlord

Suppose us follows a fixed exchange rate regime. decrease in import tariff on mexican good by the us government will lead to of us dollar with respect to pesos, at the fixed exchange rate. to keep the exchange rate fixed, the fed should dollars.

a. overvaluation, buy
b. undervaluation, sell
c. overvaluation, sell
d. undervaluation, buy

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Suppose us follows a fixed exchange rate regime. decrease in import tariff on mexican good by the us...
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