Which is not a serious disadvantage associated with freely fluctuating exchange rates?
A) uncertainty which tends to diminish trade
B) greater instability in unemployment levels
C) longer lags in eliminating balance of payments surpluses or deficits
D) swings in the terms of trade related to currency appreciation or depreciation
Correct Answer:
Verified
Q253: When the nation's FX reserves are rising,
Q273: Fixed exchange rates are often maintained by
Q274: A declining amount of foreign-exchange reserves resulting
Q275: Suppose that Econland has a fixed exchange-rate
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents