______________ are seen as a mechanism for controlling inflation and imposing economic discipline on countries.
A) Fixed exchange rates
B) Floating exchange rates
C) Global exchange rates
D) Transnational exchange rates
E) Managed float systems

Question

Quizplus · Accepted Answer

Fixed exchange rates are seen as a mechanism for controlling inflation and imposing economic discipline on countries because they limit the flexibility of exchange rates and force countries to maintain a stable currency value. This helps to prevent currency fluctuations and reduces inflationary pressures in the economy. In addition, fixed exchange rates require countries to maintain tight control over their monetary and fiscal policies, which can help to promote stability and discipline in the economy.

______________ Are Seen as a Mechanism for Controlling Inflation and Imposing