Advocates of Flexible Exchange Rates Claim That Under Flexible Exchange

question 115

Multiple Choice

Advocates of flexible exchange rates claim that under flexible exchange rates

• A) enhanced control over fiscal policy would allow countries to dismantle their distorting barriers to international payments.
• B) reduced control over monetary policy would allow countries to dismantle their distorting barriers to international payments.
• C) enhanced control over monetary policy would allow countries to increase their distorting barriers to international payments.
• D) enhanced control over monetary policy would allow countries to dismantle their distorting barriers to international payments.
• E) enhanced control over monetary policy would destabilize exchange rates.

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Definitions:

Value-Expressive Function

A psychological function wherein attitudes and preferences express the individual's central values and self-concept.

Motives

Internal psychological forces that prompt a person toward a particular action or behavior, typically stemming from personal desires or needs.

ABC Model

A cognitive behavioral approach that describes the relationships between antecedents, behavior, and consequences; often used in psychology to understand and modify behavior.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.