Answer:
B for 1, D for 2, and B( I think) for 3. Not so confident on answer 3. Hope this helps!
A nation would use the domestic stabilization policies to eliminate the shortage of foreign currency in order to maintain fixed exchange rate.
Domestic stabilization policies such as monetary policy and fiscal policy can be used to eliminate the shortage of foreign currency in order to main fixed exchange rate.
The fiscal policy promotes macroeconomic stability by sustaining aggregate demand and private sector incomes during an economic downturn and moderates economic activity during economic growth.
If the exchange rate drifts too far below the desired rate, the government would buy its own currency in the market by selling its reserves. A fixed exchange rate is determined by the government through its central bank.
Hence, The policy of domestic stabilization is used by a nation to eliminate the shortage of foreign currency in order to maintain fixed exchange rate.
To learn more about the fixed exchange rate here:
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The false dilemma fallacy is concerned with future events? false, it is a fallacy in which it is assumed that only two options are possible, when in fact one option does not follow the negation of the other or there are other options and possibilities, for example: If you're not with me, you're against me, it seems to be two options but there is one.
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