Which of the Following Is Not an Argument in Favor

question 26

Multiple Choice

Which of the following is not an argument in favor of flexible exchange rates?

• A) Flexible exchange rates result in greater economic stability.
• B) Flexible exchange rates provide a discipline for central banks in their practice of monetary policy.
• C) Flexible rates allow central banks the freedom to pursue the whatever policies are necessary for full employment.
• D) Destabilizing speculation is less likely to occur when exchange rates adjust continuously.

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