Which of the Following Statements Is Correct with Respect to Flexible

question 12

Multiple Choice

Which of the following statements is correct with respect to flexible exchange rates?

• A)they insulate the domestic economy from external shocks much more than fixed exchange rates
• B)they are particularly attractive to nations subject to large external shocks
• C)they provide less stability to an open economy subject to large internal shocks
• D)all of the above

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Definitions:

Consuming It

Pertains to the act of using up resources or products to satisfy needs or desires.

Ability

The possession of the means or skill to do something.

Satisfy Wants

The fulfillment of human desires or needs through the consumption of goods and services.

Utility

In economics, utility is the satisfaction or benefit derived by consumers from consuming goods or services.