Which of the following arguments is not used to argue against the Fed attempting to keep interest and exchange rates stable?
A) Maintaining stable interest rates in the face of a fluctuating demand for money is not really within the capabilities of the Fed.
B) Keeping interest rates fixed for too long can actually lead to a financial crisis.
C) Stable exchange rates between nations that are very different may be problematic in the long run.
D) Stable exchange rates can rarely be expected to lead to higher levels of global trade.
Correct Answer:
Verified
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