In Managed Float Exchange Rate Policy,a Main Objective for Government

question 33

True/False

In managed float exchange rate policy,a main objective for government intervention in deciding the exchange rate is to prevent erratic fluctuations that may trigger macroeconomic turbulence.

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Definitions:

Economic Cooperation

Collaboration between different countries or entities to improve their economic conditions through various means such as trade agreements and partnerships.

Excise Tax

Levies charged by the government on the sale of certain goods and services, typically aimed at regulating consumption or raising revenue for specific purposes.

Buyers

Individuals or entities that purchase goods or services for consumption or investment.

Market Situations

Scenarios or conditions prevailing in a market that influence the behavior of market participants, including competitiveness, demand, and supply dynamics.