In a Fixed Exchange Rate System

In a fixed exchange rate system,

A) Excess demand for a currency is eliminated by using foreign exchange reserves to increase demand.
B) A country can eliminate a surplus of its currency by eliminating its protectionist barriers to trade.
C) The capital account surpluses must offset current account deficits.
D) A balance-of-payments deficit can be corrected by expansionary fiscal and expansionary monetary policies.

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