A Common Argument for Fixed Exchange Rates Is That They

question 72

Multiple Choice

A common argument for fixed exchange rates is that they

• A)give central banks greater freedom in adjusting their economy's level of output.
• B)forever free the central bank from have to adjust the exchange rate to fundamental changes in the economy.
• C)make trade more costly, and thus encourage domestic citizens to buy domestically produced output.
• D)all of the above
• E) none of the above

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Definitions:

Swap Genes

The process of exchanging genetic material between two chromosomes or fragments, leading to genetic recombination or horizontal gene transfer.

Cetaceans

A group of marine mammals that includes whales, dolphins, and porpoises, characterized by their fully aquatic lifestyle and adaptations such as flippers and blowholes.

Pakicetus

An extinct genus of early whales that is considered a crucial link in the evolution from land mammals to aquatic cetaceans.

Indohyus

An extinct genus of even-toed ungulates that is considered an early ancestor to modern whales, highlighting the evolution of aquatic mammals.