Under which of the following is trade between countries brought into balance through shifts in currency supply and demand curves?
A) the gold standard
B) the multinational exchange standard
C) fixed exchange rates
D) flexible exchange rates
E) equation of exchange rates

Question

Quizplus · Accepted Answer

Flexible exchange rates allow for currency supply and demand curves to shift in response to changes in trade between countries, leading to a balance or adjustment in the exchange rate. The other options either involve fixed exchange rates where adjustments are not as easily made (A and C) or are not directly related to trade (B and E).

Under Which of the Following Is Trade Between Countries Brought