Political tensions may arise from nations pegging to a center base country's currency if:
A) asymmetric shocks cause the home nation to lose the power to stabilize.
B) it is determined that the center nation has been misrepresenting the value of its currency.
C) financing of military spending becomes more difficult.
D) interest rates are affected.
Ans: A) asymmetric shocks cause the home nation to lose the power to stabilize.
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