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The Main Difference Between a Flexible and a Fixed Exchange

Question 32

Multiple Choice

The main difference between a flexible and a fixed exchange rate system is that the flexible exchange rate ________.


A) varies constantly, while the fixed exchange rate is never constant
B) can sometimes be constant, but the fixed exchange rate is always constant
C) can sometimes be constant, but the fixed exchange rate is never constant
D) varies constantly, while the fixed exchange rate is always constant

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