A country operates a fixed exchange rate system.
What will put pressure on the country to devalue its currency?
1 )
a decrease in the country’s inflation rate relative to the inflation rates of other countries
2 )
a decrease in the tariffs on its products imposed by other countries
an increase in its current account balance of payments deficit with other countries
4 )
an increase in the country’s interest rate relative to the interest rates of other countries
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