The Figure Given Below Depicts the Foreign Exchange Market for British

question 28

Multiple Choice

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-One of the advantages of floating exchange rates is that:

• A)consumers always know how much imported goods cost.
• B)businesses always know, in advance, what future exchange rates will be.
• C)countries are free to pursue their own macroeconomic policies without maintaining exchange rates.
• D)countries cannot act independently and must thus coordinate their macroeconomic policies.
• E)the global interest rate tends to decline to the lowest possible level.

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