Under flexible exchange rates, _______ limit a country's ability to execute policies that deviate significantly from those of the rest of the world.
A)capital flows
B)exchange rate controls
C)capital controls
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Capital flows limit a country's ability to execute policies that significantly deviate from those of the rest of the world under flexible exchange rates, as they can quickly move in response to policy changes, affecting the exchange rate and potentially undermining policy goals.

Under Flexible Exchange Rates, _______ Limit a Country's Ability to Execute