Which One of the Following Is NOT an Alleged Disadvantage

question 18

Multiple Choice

Which one of the following is NOT an alleged disadvantage of a flexible exchange rate system?

• A) possibility of destabilizing speculation
• B) wasteful resource movements between industries
• C) increased need for international reserves
• D) danger of a "vicious circle" between inflation in a country and depreciation of that Country's currency

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Definitions:

Research Hypothesis

A specific, testable prediction about the expected outcome in a study, often indicating a predicted relationship between variables.

Nondirect Relationship

A relationship between two variables where changes in one variable do not lead to consistent and predictable changes in another variable directly.

One-tailed

A hypothesis test where the area of interest is only on one side of the sampling distribution, indicating either a greater-than or less-than direction but not both.

Two-tailed

A type of statistical test that considers both directions of a possible effect, looking for deviations from a null hypothesis in two opposite directions.