Which of the following is true regarding the implications for international businesses in the present monetary system?
A) In the long run, the monetary policies imposed by the International Monetary Fund on borrowing countries hampers economic growth.
B) In the short run, the anti-inflationary monetary policies of the International Monetary Fund result in contraction of demand.
C) Businesses should not use their influence to alter an international monetary system to promote international trade and investment.
D) Exchange rate volatility such as the world experienced during the 1980s and 1990s creates an environment more conducive to international trade and investment.
E) It is in the interests of international business to promote an international monetary system that maximizes volatile exchange rate movements.
Correct Answer:
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