Proponents of the Flexible Exchange Rate System Argue That Under

question 21

Multiple Choice

Proponents of the flexible exchange rate system argue that under a fixed exchange rate system,

• A) there is too great a chance that the exchange rate will diverge from the equilibrium exchange rate.
• B) nations that experience persistent trade deficits might be tempted to impose trade barriers.
• C) nations might sacrifice their domestic economic policy goals for the sake of maintaining the exchange rate.
• D) b and c
• E) a,b,and c

---

Definitions:

American Indians

Indigenous peoples of the United States, also referred to as Native Americans, who have historical ties to the lands within the present-day borders of the country.

High School

An educational institution that serves students typically in grades 9 through 12, preparing them for college or vocational training.

Iroquois Nation

The Iroquois Nation, also known as the Haudenosaunee, is a historically powerful and important confederation of six Native American tribes primarily located in present-day New York state.

Historic Distortion

The misrepresentation or alteration of historical facts or events, often to serve a particular ideological purpose or narrative.