Disadvantage of using rigid policy of fixed exchange rates

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Reference no: EM131165579

Which of the following is a disadvantage of using a rigid policy of fixed exchange rates?

It is likely to bring about trade wars between nations.

It is likely to create high unemployment in some cases.

It will instigate competitive devaluations and intense competition.

It will lead to inflationary economies across the world.

Reference no: EM131165579

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