Critics of the System of Flexible Exchange Rates Allege That

question 12

Multiple Choice

Critics of the system of flexible exchange rates allege that it:

• A)causes inflation.
• B)causes unemployment.
• C)gives central banks too little discretion over their money supplies.
• D)restricts the growth of developing countries.
• E)gives too much financial power to industrial countries.

---

Definitions:

Socialism

A political and economic theory advocating for collective or governmental ownership and management of the means of production and distribution of goods.

Classless Society

A society in which hierarchical divisions based on economic status are absent, aiming for equal access to resources and opportunities for all.

Marx

Refers to Karl Marx, a 19th-century philosopher, economist, and political theorist whose works have influenced various fields, especially with his critique of capitalism and ideas about socialism and communism.

Capitalism

A system of economics where the means of producing goods are privately owned and operated to generate profit, marked by open markets, the growth of capital, and labor for wages.