A flexible, or floating, exchange rate system relies on currency markets to determine the exchange rates consistent with macroeconomic conditions.

Name: A flexible, or floating, exchange rate system relies on currency markets to determine the exchange rates consistent with macroeconomic conditions.
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Question

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A flexible exchange rate system allows currency values to fluctuate according to supply and demand in the foreign exchange market, reflecting macroeconomic conditions.

A Flexible, or Floating, Exchange Rate System Relies on Currency