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Countries That Follow Floating Exchange Rate Regimes

Question 464

Multiple Choice

Countries that follow floating exchange rate regimes:


A) tend to insulate themselves from economic fluctuations in other countries.
B) give up the ability to use monetary policy as a stabilization tool.
C) find that they are susceptible to economic fluctuations in other countries.
D) give up the ability to use fiscal policy as a stabilization tool.

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