A Floating Exchange Rate

question 47

Multiple Choice

A floating exchange rate:

• A) retains the ability of monetary policy to help stabilize the economy.
• B) reduces the ability of monetary policy to stabilize the economy.
• C) reduces the uncertainty faced by business firms.
• D) makes foreign goods easier to price.

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Definitions:

Taste

A sense that detects flavors in substances, primarily recognized via taste buds on the tongue.

Chemical Stimulus

A type of stimulus involving chemicals that can initiate a biological response in an organism or cell.

Olfactory

Relating to the sense of smell or the organs of smell.

Facial

Pertaining to the face or a beauty treatment for the face.