One Argument Favouring a Fixed-Exchange-Rate System Is That It

question 40

Multiple Choice

One argument favouring a fixed-exchange-rate system is that it:

• A)allows monetary policy to be used for stabilizing output and prices.
• B)reduces exchange-rate uncertainty, thereby promoting more international trade.
• C)leads to excessive growth of the money supply.
• D)requires no actions on the part of the central bank to implement.

---

Definitions:

Discrete Blocks

Individual, separate units or components that can be combined or arranged in various ways.

Embedded Links

Hyperlinks placed within a digital document or webpage that lead to related information or resources when clicked.

Inverted Pyramid Style

The inverted pyramid style is a method of writing, particularly in journalism, where the most important information is presented first, followed by details in decreasing order of importance.

Information Organized

The process of arranging, structuring, and presenting data or information in a systematic way to make it understandable and accessible.