Critics of Fixed Exchange Rates Argue That Fixed Rates

question 117

Multiple Choice

Critics of fixed exchange rates argue that fixed rates:

• A)​reduce uncertainty in international trade.
• B)​result in currency shortages just as wage and price controls lead to shortages in markets for goods and services.
• C)​make nations less constrained in carrying out in internal macroeconomic policies.
• D)​lead to constant, day-to-day changes in the exchange values of currencies.

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