Market forces have produced a stable dollar exchange rate under a floating exchange rate regime.

Question

Quizplus · Accepted Answer

Under a floating exchange rate regime, market forces have produced a volatile dollar exchange rate. Governments have sometimes responded by intervening in the market-buying and selling dollars-in an attempt to limit the market's volatility and to correct what they see as overvaluation or potential undervaluation of the dollar.

Market Forces Have Produced a Stable Dollar Exchange Rate Under