Economist Charles Kindleberger (a proponent of fixed exchange rates mentioned in the textbook) would agree with which of the following statements?
A) It is better to leave the international value of the domestic currency to the free market forces than to have to sacrifice domestic economic goals in order to support a certain predetermined value of the currency.
B) There is too great a chance that the supported exchange rates will diverge significantly from the equilibrium exchange rates, which would create persistent problems and lead to an overall decrease in international trade.
C) With no certainty of what one nation's currency will be worth in terms of other nations' currencies, international trade is held below what it could be.
D) A flexible exchange rate system is more stable than a fixed exchange rate system.
Correct Answer:
Verified
Q44: Suppose the current exchange rate between the
Q58: The proponents of fixed exchange rates argue
Q59: If,under a fixed exchange rate system,the dollar
Q60: If,under a fixed exchange rate system,the dollar
Q65: If the U.S.dollar appreciates in the foreign
Q67: The foreign exchange market is the market
Q71: The current international monetary system is best
Q72: As the dollar price of a foreign
Q74: If inflation in the United States rises
Q75: When the equilibrium dollar price of a
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