Question

A small economy country whose GDP is heavily dependent on trade with the United States could use a(n) ________ exchange rate regime to minimize the risk to their economy that could arise due to unfavorable changes in the exchange rate. A. pegged exchange rate with the United States B. managed float C. pegged exchange rate with the Euro D. independent floating

Answer 1

The answer is A. pegged exchange rate with the United States

Step-by-step explanation:

Pegged exchange rate is a fixed exchange rate, where the currency of one country is tied to a usually stronger currency,