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.

---

Definitions:

Cerebral Commissures

Bundles of nerve fibers that connect the two hemispheres of the brain, facilitating interhemispheric communication.

Declarative Memory

Declarative memory refers to the recall of specific facts and events that can be consciously verbalized.

Corticobulbar

Pertaining to neural pathways that connect the cerebral cortex to the brainstem, involved in movement control.

Corticospinal

Pertaining to the motor pathways that travel from the cerebral cortex to the spinal cord, involved in voluntary movement control.