Economist Charles Kindleberger (a proponent of fixed exchange rates mentioned in the text) would agree with which of the following statements?
A) It is better to leave the international value of the domestic currency to the free market forces than to have to sacrifice domestic economic goals in order to support a certain predetermined value of the currency.
B) There is too great a chance that the supported exchange rates will diverge significantly from the equilibrium exchange rates,which would create persistent problems and lead to an overall decrease in international trade.
C) With no certainty of what one nation's currency will be worth in terms of other nations' currencies,international trade is held below what it could be.
D) a and b
Correct Answer:
Verified
Q57: Proponents of the fixed exchange rate system
Q58: The purchasing power parity theory predicts better
Q59: If,under a fixed exchange rate system,the dollar
Q60: If,under a fixed exchange rate system,the dollar
Q61: Proponents of the flexible exchange rate system
Q63: If the U.S.dollar depreciates in the foreign
Q64: Which of the following points would not
Q65: If the U.S.dollar appreciates in the foreign
Q66: As the dollar price of a foreign
Q67: The market in which the currencies of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents