Pegging a country's exchange rate to the dollar can be advantageous if - 3637

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Pegging a country's exchange rate to the dollar can be advantageous if 

A. a country wishes to conduct independent monetary policy.

B. imports are not a significant fraction of the goods the country's consumers buy.

C. investors believe the dollar to be more stable than the domestic country's currency.

D. the country does not trade much with the United States.

 
Solution Description

Pegging a country's exchange rate to the dollar can be advantageous if