Which of the Following Events Is Least Likely to Take

question 39

Multiple Choice

Which of the following events is least likely to take place under a fixed exchange rate system?

• A) an increased volume of trade because of a decline in exchange rate volatility
• B) increased cross-border capital flows
• C) increase in cost of trade because of higher transaction costs
• D) increased cross-border labor flows in integrated economies

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Definitions:

Unconstitutional

Something that is not in accordance with a political constitution, especially the US Constitution, or with procedural rules.

Alcohol Content

The percentage of ethanol present in a beverage, determining its potency and classified by volume or weight.

Federal Legislation

The laws passed by the national government of a country, which apply to all its states and territories.

Constitutionally

Pertaining to the constitution of a country or organization, especially relating to the legal and framework foundation.