Which of the following results from a flexible exchange rate system?
A) A country is more restricted in its own monetary policy.
B) Inflation is more likely to be self-correcting as compared to a fixed exchange rate system.
C) There is a greater risk in international trade because changes in the exchange rate can adversely affect profit.
D) Unemployment is more likely to be self-correcting as compared to a fixed exchange rate system.
Correct Answer:
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Q14: If a country under a fixed exchange
Q15: Which of the following contributed to the
Q16: If international trade and capital flows are
Q17: With the enactment of a flexible exchange
Q18: Which of the following factors would most
Q20: Because of the greater exchange rate risk
Q21: Which of the following is a major
Q22: Which of the following is false?
A)One reason
Q23: Which of the following is true?
A)When the
Q24: Which of the following is true?
A)One disadvantage
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