Which of the Following Arguments Strengthen the Idea of Floating

question 26

Multiple Choice

Which of the following arguments strengthen the idea of floating exchange rates?

• A) External agencies should not interfere in the monetary policies of a country.
• B) Trade deficits can be corrected through changes in exchange rates.
• C) Changes in exchange rates will not impact the trade balance in a country.
• D) Governments should act in ways to minimize the uncertainty in monetary markets.

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