Proponents of a Fixed Exchange Rate System Maintain That It

question 87

Multiple Choice

Proponents of a fixed exchange rate system maintain that it is superior to a freely floating exchange rate system because it

• A) keeps inflation under control
• B) provides a simple and clear exchange-rate target
• C) provides continuous adjustment in the balance of payments
• D) helps prevent disorderly exchange rate movements that can disrupt trade

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Definitions:

Pulmonary Capillaries

Tiny blood vessels surrounding alveoli in the lungs where Gas exchange of oxygen and carbon dioxide occurs.

Partial Pressure

The pressure a single gas in a mixture contributes to the total pressure, based on its proportion in the mixture.

Ventilation

Process of moving air into and out of the lungs; breathing.

External Respiration

Exchange of oxygen and carbon dioxide between alveoli of the lungs and blood.