When a Nation Chooses to Fix or Float, It Should

question 113

Multiple Choice

When a nation chooses to fix or float, it should consider:

• A) only its domestic banks, importers, and exporters.
• B) only whether it has a great deal of economic integration.
• C) only whether it has similar circumstances in terms of demand or supply shocks with its trading partners.
• D) both the level of economic integration and the similarity of demand or supply shocks.

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