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Which One of the Following Statements Is TRUE

Question 58

Multiple Choice

Which one of the following statements is TRUE?


A) The less extensive are cross-border trade and factor movements, the greater is the gain from a fixed cross-border exchange rate.
B) The more extensive are cross-border trade and factor movements, the greater is the loss from a fixed cross-border exchange rate.
C) The more extensive are cross-border trade and factor movements, the greater is the gain from a fixed cross-border exchange rate.
D) The more extensive are cross-border trade, the greater is the loss from a fixed cross-border exchange rate.
E) The more extensive are factor movements, the greater is the loss from a fixed cross-border exchange rate.

Correct Answer:

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