Suppose the government of Iraq is deciding what kind of monetary policy and exchange rate regime to choose. The government wants to ensure stability in international trade and investment by pegging the Iraqi dinar to the U. S. dollar. Which of the following policy choices will achieve this goal?
a. Maintaining capital controls with no independent monetary policy
b. Controlling the interest rate in the country and imposing restrictions on foreign exchange trading
c. Foregoing monetary policy autonomy without imposing capital controls
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