The Reason That the Claim That Floating Exchange Rates Result

question 72

Multiple Choice

The reason that the claim that floating exchange rates result in greater economic autonomy for individual countries may not be entirely accurate is that

• A) empirical research finds no supporting data.
• B) policy makers are influenced by the effect of domestic policies on the exchange rate.
• C) there is no generally satisfactory method for measuring economic autonomy.
• D) it is based on the assumption of a gold standard.
• E) countries that run large trade deficits must increase exports to balance trade.

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Definitions:

Video Game

An electronic game that involves interaction with a user interface to generate visual feedback on a screen.

REM Sleep

A stage of sleep characterized by rapid eye movements, increased respiratory rate, and a high level of brain activity; often associated with vivid dreams.

Dreaming

The experience of envisioned images, sounds, or other sensations during sleep, particularly during the rapid eye movement (REM) stage.

Alpha Waves

Brain rhythms detectable by EEG, typically associated with relaxed, wakeful states, and indicating a lack of arousal in most individuals.