The case for floating exchange rates has two main elements.These are:
A) monetary policy autonomy and automatic trade balance adjustments
B) sporadic trade balance adjustments and monetary policy autonomy
C) the impracticality of the gold standard and monetary policy control
D) monetary policy control and sporadic trade balance adjustments
E) monetary policy interdependence and autonomic trade balance adjustments

Question

Quizplus · Accepted Answer

The case for floating exchange rates is based on the two main elements of monetary policy autonomy and automatic trade balance adjustments. This means that countries have control over their own monetary policies and can adjust interest rates and other measures to address their specific economic needs, while also allowing the exchange rate to fluctuate freely based on market forces, which can help to automatically rebalance trade.

The Case for Floating Exchange Rates Has Two Main Elements