International Businesses Like a Fixed Exchange-Rate System Because

question 53

Multiple Choice

International businesses like a fixed exchange-rate system because

• A)they like large swings in currency values when devaluation or revaluation occur.
• B)they profit by speculating on devaluation or revaluation.
• C)they can plan better if they know what the exchange rate will be.
• D)fixed exchange rates are economically efficient.

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Definitions:

Cultural Change

The transformation of society or cultural norms over time, which can be driven by various factors including technology, economy, politics, and social movements.

Mutual Constitution

The process by which individuals and societal structures influence and shape each other reciprocally.

Cognitive Revolution

A shift in psychology that occurred in the 1950s and 1960s, focusing on the study of how people think, perceive, remember, and learn.

Mutual Constitution

A concept in social science that describes the reciprocal way in which individuals and societal structures are shaped by each other.