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Each of the Following Is a Benefit of a Floating

Question 41

Multiple Choice

Each of the following is a benefit of a floating exchange rate system except


A) exchange rates are set by supply and demand, not by government decree.
B) governments are keeping the contracts they made with investors in foreign countries.
C) monetary or confidence shocks are not rapidly transmitted to other countries.
D) monetary policy is free to set interest rates at whatever level the central bank deems desirable to maintain internal balance.

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