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:

Infrared Energy

Invisible radiant energy emitted by all objects above absolute zero, detectable as heat.

Greenhouse Gases

Atmospheric gases, including water vapor, carbon dioxide, and methane, that contribute to the Earth’s greenhouse effect.

Air Temperatures

The measure of how hot or cold the atmosphere is at a specific time and place.

Global Warming

refers to the long-term rise in Earth's average surface temperature due to human activities, especially fossil fuel burning, which adds heat-trapping gases to Earth's atmosphere.