The desire of governments to be able to use monetary and fiscal policies to pursue domestic goals of stable prices and full employment has been a reason that:
A)fixed exchange rates have been replaced with flexible exchange rates.
B)flexible exchange rates have been replace with fixed exchange rates.
C)countries have tried to stabilize their exchange rates at a high level.
D)countries have tried to stabilize their exchange rates at a low level.

Question

Quizplus · Accepted Answer

Flexible exchange rates allow governments to use monetary and fiscal policies more freely to achieve domestic economic goals without being constrained by the need to maintain a fixed exchange rate.

The Desire of Governments to Be Able to Use Monetary