Countries That Follow Floating Exchange Rate Regimes

question 106

Multiple Choice

Countries that follow floating exchange rate regimes:

• A)tend to insulate themselves from economic fluctuations in other countries.
• B)give up the ability to use monetary policy as a stabilization tool.
• C)find that they are susceptible to economic fluctuations in other countries.
• D)give up the ability to use fiscal policy as a stabilization tool.

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Definitions:

Breached

Violation or breaking of a law, duty, or agreement.

Consideration

In contract law, consideration refers to something of value that is exchanged between parties as part of an agreement.

Capacity

The legal ability of a person to enter into binding contracts.

Legal Right

A legal right is an entitlement or permission recognized by law, provided to individuals or entities, covering both freedoms and entitlements.