Identify the Correct Statement

question 31

Multiple Choice

Identify the correct statement.

• A)International capital-flow shocks are likely to be less disruptive under fixed exchange-rates.
• B)If a country is likely to be buffeted mainly by internal shocks, the country should choose a fixed exchange-rate.
• C)The effects of shocks under floating exchange-rates depend on whether interventions are sterilized.
• D)International trade shocks can be countered by adopting a fixed exchange rate that helps to improve price competitiveness of the country's products.

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Definitions:

Respect

An attitude of admiration or deference towards someone or something, often shown by treating them with kindness, honoring their rights, and valuing their contributions.

Boarding School Experience

The Boarding School Experience refers to living and studying in a school where students reside on campus during the school term.

Governmental Policies

Rules, laws, or guidelines that are created and enforced by a government to regulate behavior, manage public resources, or provide services to its citizens.

Long-term Repercussions

Enduring consequences or effects that result from actions, events, or decisions, often extending far beyond the initial occurrence.