Proposals to Establish and Maintain Exchange Rate Target Zones Are

question 60

Multiple Choice

Proposals to establish and maintain exchange rate target zones are intended to

• A) facilitate the reestablishment of the gold exchange standard.
• B) make it easier for individual countries to pursue domestic full-employment fiscal and monetary policies without regard to their international consequences.
• C) ensure that the international volume of exports will equal the international volume of imports.
• D) allow governments to independently choose whether to have fixed or flexible exchange rates.
• E) minimize the extent to which exchange rates can fluctuate.

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