Countries Are Unlikely to Maintain Fixed Exchange Rates for Long

question 95

Multiple Choice

Countries are unlikely to maintain fixed exchange rates for long periods of time because:

• A)they lack the tools to do so.
• B)fixed exchange rates eventually produce very high levels of inflation.
• C)fixed exchange rates impede a nation's ability to use monetary and fiscal policy to pursue domestic macroeconomic goals.
• D)fixed exchange rates promote domestic macroeconomic goals at the expense of international macroeconomic goals.

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Definitions:

Forecasting Method Categories

Different approaches or techniques used to predict future aspects of business operations, such as sales, demand, and inventory requirements.

Human Resource Forecasting

The process of estimating an organization’s future human resource needs and determining how to meet those needs.

Macro Perspective

A broad, comprehensive view focusing on large-scale patterns and processes within a system.

Micro Perspective

An approach that focuses on small-scale interactions or components within a larger system.