A political group in the country of Ninook is opposed to the government moving to a floating exchange rate regime.Which of the following arguments for a fixed exchange rate system should the political group use to gain support for its stance?

Question

Quizplus · Accepted Answer

A fixed exchange rate regime provides higher monetary discipline as the government has to maintain the exchange rate within a specific range. This can prevent the government from engaging in excessive money printing and inflation.

A Political Group in the Country of Ninook Is Opposed