Unformatted text preview: D. the more diversified and more trade-dependent its economy is. 98. Once capital markets are integrated, it is difficult for a country to maintain a fixed exchange rate. Why? A. The market forces may be stronger than the exchange rate intervention that the government can muster. B. Portfolio managers will not invest in countries with fixed exchange rates. C. Because of the Tobin Tax. D. None of the above...
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- Spring '11
- Exchange Rate, Foreign exchange market, Tobin tax, Renminbi, Speculative attack