Which of the Following Is an Argument for a Fixed

question 119

Multiple Choice

Which of the following is an argument for a fixed exchange rate system?

• A)Governments can contract their money supply without worrying about the need to maintain parity.
• B)Trade balance adjustments do not require the intervention of the International Monetary Fund.
• C)It ensures that governments do not expand the monetary supply too rapidly, thus causing high price inflation.
• D)Speculations in exchange rates boost exports and reduce imports.
• E)Each country should be allowed to choose its own inflation rate.

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Definitions:

Experimental Study

A research methodology that assesses the cause-and-effect relationship between manipulated independent variables and measured dependent variables in a controlled environment.

Treatment

Methods or interventions, including medication, surgery, or therapy, designed to manage or cure medical or psychological conditions.

Internal Validity

The extent to which a study can rule out alternative explanations for its findings, ensuring that the results are due to the manipulated variables.

Dependent Variable

A variable in an experiment or study that is affected or influenced by changes in another variable, typically known as the independent variable.