Increase the demand for international reserves

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Reference no: EM13976407

A factor that would increase the demand for international reserves is

a. increased domestic price flexibility within industrial nations

b. a reduction in the ratio of exports to GDP for major industrial nations

c. a shift from a flexible to a fixed exchange-rate system

d. increased use of import tariffs and exchange controls to reduce balance-of-payments deficits.

Please explain your answer.

Reference no: EM13976407

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