Critics of Fixed Exchange Rates Argue That Fixed Rates

question 117

Multiple Choice

Critics of fixed exchange rates argue that fixed rates:

• A)​reduce uncertainty in international trade.
• B)​result in currency shortages just as wage and price controls lead to shortages in markets for goods and services.
• C)​make nations less constrained in carrying out in internal macroeconomic policies.
• D)​lead to constant, day-to-day changes in the exchange values of currencies.

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Definitions:

Implicit Memory

A type of long-term memory that operates below the conscious level, enabling the performance of tasks without conscious awareness of these previous experiences.

Conscious Awareness

Conscious Awareness is the mental state of being fully alert, aware, and attentive to one's thoughts, feelings, and surroundings.

Introspection

The examination of one's own thoughts and feelings, a method often used in psychology.

Blindsight

A phenomenon where individuals with visual cortex damage demonstrate a response to visual stimuli without consciously perceiving them.