A Fixed Exchange Rate Causes

question 79

Multiple Choice

A fixed exchange rate causes:

• A) transaction costs to increase.
• B) efficiency to increase only if the economies are integrated.
• C) efficiency to increase under all circumstances.
• D) volume of trade to decline.

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Definitions:

Humanistic

An approach in psychology that emphasizes empathy and stresses the good in human behavior.

Hypotheses

Proposed explanations or predictions for specific phenomena, typically based on limited evidence, to be tested through further investigation.

Tentative Explanations

Preliminary hypotheses or guesses made to explain a phenomenon, subject to further confirmation or refutation.

Scientifically Tested

The evaluation or investigation of a hypothesis, theory, or product through rigorous and controlled experiments to establish its validity or efficacy.