Under a Flexible as Compared to a Fixed Exchange Rate

question 8

Multiple Choice

Under a flexible as compared to a fixed exchange rate system:

• A)a nation can more easily achieve its desired inflation-unemployment tradeoff
• B)it is more difficult for a nation to achieve its desired inflation-unemployment tradeoff
• C)it is more difficult for a nation to achieve internal balance
• D)it is more difficult for a nation to achieve external balance

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