Advocates of Flexible Exchange Rates Claim That Under Flexible Exchange

question 125

Multiple Choice

Advocates of flexible exchange rates claim that under flexible exchange rates

• A) no country would be forced to import only inflation from abroad.
• B) no country would be forced to import only deflation from abroad.
• C) no country would be forced to import inflation and deflation from abroad.
• D) flexible exchange rates are not able to halt importing inflation from abroad.
• E) flexible exchange rates are not able to halt importing deflation from abroad.

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Definitions:

Word Root

The base part of a word, to which affixes (prefixes and suffixes) can be added to create related words.

Kidney

A pair of bean-shaped organs in the renal system that filter waste products from the blood and excrete them as urine.

Urinary System

The organs of the body involved in the production, storage, and excretion of urine.

Urine

A liquid waste product filtered from the blood by the kidneys, stored in the bladder, and expelled from the body through urination.