A Flexible Exchange Rate Policy

question 48

Multiple Choice

A flexible exchange rate policy

• A)is one in which the central bank has flexibility in determining exchange rates.
• B)has not been used in the United States since the Great Depression.
• C)is one in which the exchange rate is determined in the foreign exchange market.
• D)gives the president the power to determine exchange rates when negotiating free trade agreements with other countries.
• E)has been adopted universally throughout the world economy.

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