Advantages of a Flexible Exchange Rates Include Which of the Following

question 31

Multiple Choice

Advantages of a flexible exchange rates include which of the following?

• A)National policy autonomy.
• B)Easier external adjustments.
• C)The government can use monetary and fiscal policies to pursue whatever economic goals it chooses.
• D)All of the above

---

Definitions:

Invisible Hand

The concept that the self-regulating nature of the marketplace leads to the efficient allocation of resources through individuals pursuing their own self-interest, originally introduced by Adam Smith.

Federal Government

A system of government in which power is divided between a central authority and constituent political units, such as states or provinces.

Central Planning

An economic system where key decisions regarding production, investment, and distribution are made by the government or a central authority, rather than left to market forces.

Consumer Goods

Products and services that satisfy human wants directly.