What Is the Main Argument of the Proponents of a Fixed

question 55

Multiple Choice

What is the main argument of the proponents of a fixed exchange rate system for Canada?

• A)There is less risk for importers,exporters and investors,and as a result there would be more trade,and the resulting gains from trade.
• B)The fixed exchange rate would act as a shock absorber and reduce the swings in output and employment.
• C)Canada's exports would be more attractive to the rest of the world,which would lead to a larger current account surplus.
• D)Investment in Canada would be more attractive to the rest of the world,which would lead to a larger capital account surplus.
• E)Canada is traditionally an exporting nation,and a fixed exchange rate is more advantageous for exporters.

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Definitions:

Epiphysis

The end part of a long bone, which is originally growing separately from the shaft but later fuses with it through ossification during growth.

Endoskeletons

Endoskeletons are internal skeletal structures composed of mineralized tissues, providing support and protection to organisms, as seen in vertebrates.

Ecdysis

The process of molting or shedding an outer cuticle layer, allowing for growth in arthropods and certain other invertebrates.

Slow-oxidative Fibers

Muscle fibers that are fatigue-resistant, have high mitochondrial density, and primarily use aerobic respiration for energy, suitable for endurance activities.