Proponents of the Managed Floating Exchange Rate System Argue That

question 301

Multiple Choice

Proponents of the managed floating exchange rate system argue that it has

• A)added the volatility needed by the exchange rate market.
• B)been effective because it is a "nonsystem" without fixed rules.
• C)been sufficiently flexible to weather major economic turbulence.
• D)resolved major problems in balance of payments surpluses and deficits.

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