Critics of the managed floating exchange rate system argue that it:

Question

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Critics argue that the managed floating exchange rate system is a "non-system" with unclear rules, which can lead to uncertainty, unpredictability, and potential market instability. They argue that the lack of clear rules can also lead to competitive devaluations and protectionism among nations, worsening global economic conditions. Therefore, option B is the best choice. Options A, C, and D are not accurate criticisms of the managed floating exchange rate system.

Critics of the Managed Floating Exchange Rate System Argue That