Which of the following is a position taken by advocates of a fixed exchange rate system?
A) Removal of the obligation to maintain exchange rate parity would restore monetary control to a government.
B) Destabilizing speculation tends to accentuate the fluctuations around the exchange rate's long-run value.
C) Speculation has negligible impact on foreign exchange rates.
D) The forward exchange market insures against the risks associated with exchange rate fluctuations.
Correct Answer:
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