The Case for Floating Exchange Rates Has Two Main Elements

question 84

Multiple Choice

The case for floating exchange rates has two main elements.These are:

• A)monetary policy autonomy and automatic trade balance adjustments.
• B)sporadic trade balance adjustments and high growth rates.
• C)the merits of the gold standard and fiscal policy autonomy.
• D)monetary policy control and fiscal policy autonomy.

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Definitions:

Dual-route Theories

Theoretical approaches suggesting two separate pathways or mechanisms in the brain for processing information, often used in the context of reading and language comprehension.

External Theories

Concepts or explanations developed to understand phenomena outside an individual or organization, often involving the broader environment or society.

Consequences of Behavior

The outcomes or impacts that result from actions of an individual or group.

Dual-route Theories

Theories proposing that there are two distinct pathways in the brain for processing information, often contrasting automatic with controlled processes.