What Is the Main Argument of the Proponents of a Fixed

question 55

Multiple Choice

What is the main argument of the proponents of a fixed exchange rate system for Canada?

• A)There is less risk for importers,exporters and investors,and as a result there would be more trade,and the resulting gains from trade.
• B)The fixed exchange rate would act as a shock absorber and reduce the swings in output and employment.
• C)Canada's exports would be more attractive to the rest of the world,which would lead to a larger current account surplus.
• D)Investment in Canada would be more attractive to the rest of the world,which would lead to a larger capital account surplus.
• E)Canada is traditionally an exporting nation,and a fixed exchange rate is more advantageous for exporters.

---

Definitions:

European Union

A political and economic union of 27 European countries that are tied by a common market and customs union, allowing for the free movement of people, goods, services, and capital.

Living on $1

Refers to the challenge or condition of surviving on one dollar per day, highlighting extreme poverty faced by individuals in some regions.

McDonaldization

Refers to the process by which the principles of fast-food restaurants are coming to dominate more and more sectors of society, promoting efficiency, calculability, predictability, and control.

Rationalism

A philosophy which emphasizes reason as the primary source of knowledge and justification over sensory experience.