Evidence shows that flexible exchange rates have created a destabilizing speculation in the foreign exchange market.

Name: Evidence shows that flexible exchange rates have created a destabilizing speculation in the foreign exchange market.
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Question

Quizplus · Accepted Answer

Flexible exchange rates often absorb external shocks and can lead to more stable economic conditions, reducing the incentive for destabilizing speculation compared to fixed exchange rate regimes.

Evidence Shows That Flexible Exchange Rates Have Created a Destabilizing