Which of the following statements is correct?

a. It is impossible for a country to fix its exchange rate and have an independent monetary policy at the same time.
b. Flexible exchange rates are always superior to fixed exchange rates.
c. Whether flexible exchange rates or fixed exchange rates are better for a nation depends on the characteristics of the economy.
d. The level at which the exchange rate is fixed does not have any implications on the amount of interaction needed by the central bank to sustain the regime of fixed exchange rate.


.C

Economics

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