Given the type of exchange rate regime Country D aims to maintain, it most likely cannot simultaneously:
A allow unrestricted capital flows and pursue an independent fiscal policy.
B pursue an independent fiscal policy and an independent monetary policy.
C allow unrestricted capital flows and pursue an independent monetary policy.
解析：
A.Incorrect. C is correct because one of the linkages of greatest concern to investors involves interest rates and exchange rates. The two are inextricably linked. This fact is perhaps most evident in the proposition that a country cannot simultaneously maintain a fixed exchange rate, allow unrestricted capital flows, and pursue an independent monetary policy. B.Incorrect. C is correct because one of the linkages of greatest concern to investors involves interest rates and exchange rates. The two are inextricably linked. This fact is perhaps most evident in the proposition that a country cannot simultaneously maintain a fixed exchange rate, allow unrestricted capital flows, and pursue an independent monetary policy. C. Correct. because one of the linkages of greatest concern to investors involves interest rates and exchange rates. The two are inextricably linked. This fact is perhaps most evident in the proposition that a country cannot simultaneously maintain a fixed exchange rate, allow unrestricted capital flows, and pursue an independent monetary policy.
