Which of the following statements is false?
A)Policy coordination is not needed under a flexible exchange rate regime because exchange rates are free to fluctuate.
B)Openness of world trade and finance makes for greater interdependence among nations.
C)Capital mobility means that a change in the interest rate relative to rates in other countries can lead to changes in exchange rates and capital flows.
D)Monetary policy of the future will likely involve more global cooperation under either a fixed or flexible exchange rate system.

Question

Quizplus · Accepted Answer

Policy coordination is still needed under a flexible exchange rate regime to address imbalances and prevent excessive volatility, which can harm international trade and economic stability.

Which of the Following Statements Is False