Why Would a Country Want Its Currency to Float? Why

question 1

Essay

Why would a country want its currency to float? Why might the country instead prefer it to be fixed in value with a nearby nation's currency?

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Definitions:

Equilibrium Price

The cost at which consumer demand for a product matches the amount manufacturers are willing to supply.

Equilibrium Quantity

The volume of commodities or services provided and required at the price where supply equals demand.

Technology Improvements

Enhancements and advancements in various technological fields that lead to better efficiency, productivity, or utility.

Substitute Good

A product or service that can be easily replaced with another by consumers if it becomes too expensive or is unavailable.