Which of the Following Is an Argument for a Floating

question 37

Multiple Choice

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

• A)Each country should be allowed to choose its own inflation rate.
• B)Speculation in exchange rates dampens the growth of international trade and investment.
• C)Unpredictability of exchange rate movements makes business planning difficult.
• D)Removal of the obligation to maintain exchange rate parity destroys a government's monetary control.
• E)Trade deficits can be determined by the balance between savings and investment in a country, not by the external value of its currency.

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Definitions:

Infantry Regiment

A military unit, typically consisting of soldiers who fight on foot, equipped for ground combat.

United States Infantry

The branch of the U.S. Army trained for ground combat operations, engaging in battle primarily on foot.

African American

Pertaining to Americans of African descent, with a history and culture shaped by the experience of slavery and the struggle for civil rights.

Armed Services

The combined military forces of a nation, including its army, navy, air force, and other branches, responsible for defending the country and engaging in combat operations.