Advantages of a flexible exchange rate include which of the following?
A)National policy autonomy.
B)Easier external adjustments.
C)The government can use monetary and fiscal policies to pursue whatever economic goals it chooses.
D)all of the options

Question

Quizplus · Accepted Answer

All of the options listed are advantages of a flexible exchange rate. With a flexible exchange rate, a country has more policy autonomy because it can adjust its exchange rate to reflect its economic conditions. This makes external adjustments easier and allows the government to use monetary and fiscal policies to pursue whatever economic goals it chooses.

Advantages of a Flexible Exchange Rate Include Which of the Following