Which Statement Makes Sense

Multiple Choice

Which statement makes sense?

A) Fixing exchange rates causes currency markets to reach equilibrium quickly.
B) Having an absolute advantage in the production of goat cheese means the country will specialize in and produce all of the goat cheese traded.
C) Arbitrage opportunities are quickly taken.
D) Floating exchange rates reduce uncertainty in the currency markets.
E) When the dollar depreciates, U.S. consumers can buy more imported goods.