Under the current floating exchange rate system each foreign government:
A) is responsible for holding the exchange rate between its currency and the U.S. dollar nearly constant.
B) buys and sells its currency to support the value of the U.S. dollar.
C) buys and sells its currency to support a $35 per ounce international price of gold.
D) rarely intervenes in foreign exchange markets relying on market forces to set exchange rates.
Correct Answer:
Verified
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