All of the Following Are True Regarding Flexible Exchange Rates

question 41

Multiple Choice

All of the following are true regarding flexible exchange rates except

• A)Speculators typically push exchange rates away from the long-term equilibrium.
• B)The quantity of foreign exchange demanded equals the quantity supplied.
• C)Exchange rate movements alter relative prices and may disrupt import and export flows.
• D)Some people are hurt while others are helped by exchange rate movements.

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Restricted in size, amount, or extent; lesser in scope or application.

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