Under a managed float exchange rate regime,policymakers frequently do not want to see their currencies depreciate because it makes ________ goods more expensive for ________ consumers and contributes to inflation.

Question

Quizplus · Accepted Answer

Under a managed float exchange rate regime, when a currency depreciates, foreign goods become more expensive for domestic consumers, which can contribute to inflation by increasing the cost of imported goods and services.

Under a Managed Float Exchange Rate Regime,policymakers Frequently Do Not