When the Economy Is Disturbed by a Change in the Output

Multiple Choice

When the economy is disturbed by a change in the output market

A) a fixed exchange rate has an advantage over a flexible rate.
B) a floating exchange rate has an advantage over a fixed rate.
C) a crawling peg exchange rate has an advantage over a flexible rate.
D) a floating exchange rate has the same effect as a fixed rate.
E) a flexible exchange rate is not as effective as a fixed exchange rate.