Which of the Following Arguments Is Not Used to Argue

question 20

Multiple Choice

Which of the following arguments is not used to argue against the Fed attempting to keep interest and exchange rates stable?

• A)Maintaining stable interest rates in the face of a fluctuating demand for money is not really within the capabilities of the Fed.
• B)Keeping interest rates fixed for too long can actually lead to a financial crisis.
• C)Stable exchange rates between nations that are very different may be problematic in the long run.
• D)Stable exchange rates can rarely be expected to lead to higher levels of global trade.

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Definitions:

Expired Credit Card

A credit card that has surpassed its end date of validity, rendering it unusable for transactions.

Best Response

The most optimal or effective reaction or answer in a given situation.

Extending Credit

A financial term referring to the offering of a loan or the ability to purchase goods or services before payment, based on the trust that payment will be made in the future.

Accounts Payable

Obligations or debts owed by a company to suppliers or creditors for goods and services received.