Which of the Following Is Not a Serious Disadvantage Associated

question 4

Multiple Choice

Which of the following is not a serious disadvantage associated with flexible exchange rates?

• A)uncertainty which tends to diminish trade
• B)worsening terms of trade if there is a sizeable depreciation of a country's currency
• C)longer lags in eliminating balance of payments surpluses or deficits
• D)greater challenges in managing and designing domestic macroeconomic policies.

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Definitions:

Behavioral Science

A field of study that examines the interactions among organisms in the natural world, focusing on their behaviors.

Explaining Behavior

The process of providing reasons or rationale for why individuals or groups act in a certain way.

Pseudoscience

Claims that are made on the basis of evidence that, despite appearances, is not based on the principles of the scientific method.

Seemingly Scientific Terms

Phrases or expressions that appear to be scientific but may lack actual scientific basis or accuracy.