Fixing exchange rates and limiting the convertibility of currency will
A) improve international trade.
B) increase the ability of people to gain from specialization.
C) lead to black markets and less trade.
D) increase productivity and living standards.

Question

Quizplus · Accepted Answer

Fixing exchange rates and limiting currency convertibility often lead to black markets as people seek alternative ways to exchange currency. This can reduce legitimate trade and economic efficiency.

Fixing Exchange Rates and Limiting the Convertibility of Currency Will