In theory, partially-flexible exchange rates:
A. permit sizable exchange rate fluctuations, as long as they foster movement toward the long-run equilibrium exchange rate.
B. require a very high level of official reserves.
C. allow speculative pressures to affect exchange rates.
D. impose no limitations on a country's monetary and fiscal policy.
Answer: A
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Fill in the blank(s) with the appropriate word(s).
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