The Reason That the Claim That Floating Exchange Rates Result

question 72

Multiple Choice

The reason that the claim that floating exchange rates result in greater economic autonomy for individual countries may not be entirely accurate is that

• A) empirical research finds no supporting data.
• B) policy makers are influenced by the effect of domestic policies on the exchange rate.
• C) there is no generally satisfactory method for measuring economic autonomy.
• D) it is based on the assumption of a gold standard.
• E) countries that run large trade deficits must increase exports to balance trade.

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Definitions:

Attribution Theory

A concept focused on how individuals interpret events and how this relates to their thinking and behavior.

Internal Cause

A factor or motive originating within an individual or system that contributes to a particular outcome or action.

Distinctiveness

The quality of being easily distinguishable from others due to unique characteristics or features.

Consensus

A general agreement among the members of a group or community, often used in the context of decision-making processes.