Supporters of a Floating Exchange Rate Cited All of the Following

question 44

Multiple Choice

Supporters of a floating exchange rate cited all of the following as advantages over the Bretton Woods system EXCEPT

• A) each country would be able to choose its own long-run inflation rate.
• B) parity changes and speculative attacks would no longer be possible.
• C) countries would be forced to work cooperatively in deciding monetary policy.
• D) exchange rates would be set symmetrically in foreign markets rather than by government decision.
• E) governments would not need to export inflation to decrease domestic unemployment.

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Definitions:

Haptic Feedback

A tactile response technology that simulates the sense of touch, providing vibrations or movements as feedback to user actions on digital devices.

Wireless Technology

Technologies that enable communication between devices without the need for physical cables or connections.

NFC

Near Field Communication involves a series of protocols that allow two devices, typically with one being a mobile device like a smartphone, to start communicating by placing them in close proximity, within a few centimeters.

Cellular

A type of network connection provided by a cell phone carrier that can also provide access to the Internet.