Proponents of Fixed Exchange Rates Would Find the Most Support

question 19

Multiple Choice

Proponents of fixed exchange rates would find the most support for their position in which one of the following empirical results regarding the relationship between
Exchange rate variations and the volume of international trade? (Assume that the empirical tests adequately account for other factors that influence the volume of trade.)

• A) no discernible relationship between exchange rate variations and the volume of trade
• B) a negative relationship between exchange rate variations and the volume of trade
• C) a mildly positive relationship between exchange rate variations and the volume of Trade
• D) a strongly positive relationship between exchange rate variations and the volume of Trade

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Definitions:

Medial Pterygoid

A muscle of the jaw involved in the movement of the mandible, contributing to the chewing process.

Hyoid Bone

A horseshoe-shaped bone in the neck that supports the tongue and is the only bone in the body not attached to another bone.

Larynx

The voice box located in the throat, responsible for producing sound, protecting the trachea during swallowing, and regulating airflow.

Trigeminal Nerve

The fifth cranial nerve responsible for sensory data from the face and motor functions such as biting and chewing.