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Which of the Following Is Incorrect

Question 37

Multiple Choice

Which of the following is incorrect?


A) Overall, floating exchange-rates discipline countries to have low inflation rates.
B) With fixed exchange-rates, a country that prefers to have a lower inflation rate than its trading partners will tend to import inflation from its partners.
C) Floating exchange-rates permit countries to have different inflation rates.
D) Since 1973, high degrees of variability of floating exchange-rates may have caused considerable adjustment into or out of trade-oriented production from time to time.

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