Which of the Following Arguments Is Against the Use of Fixed

question 42

Multiple Choice

Which of the following arguments is against the use of fixed exchange rates?

• A) Monetary discipline is the most important determinant of a strong economy.
• B) Each country has the freedom to choose its own inflation rate.
• C) Market speculation can cause fluctuations in exchange rates.
• D) Governments are likely to expand the monetary supply far too rapidly due to political pressures.

---

Definitions:

Sample Standard Deviations

A measure that quantifies the amount of variation or dispersion of a set of data values from its sample mean.

Equal Sample Sizes

A condition in statistical analysis where the number of observations in each group being compared is the same.

Confidence Interval

A range of values, derived from the sample statistics, that is likely to contain the value of an unknown population parameter with a certain degree of confidence.

Margin Of Error

An indication of the confidence in the results of a survey or experiment, showing how much the answers may deviate from the true value.