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    International Economics Study Set 7
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    Exam 17: The Income Adjustment Mechanism and Synthesis of Automatic Adjustments
  5. Question
    One Disadvantage Facing a Freely Flexible Exchange Rate System Is
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One Disadvantage Facing a Freely Flexible Exchange Rate System Is

Question 28

Question 28

Multiple Choice

One disadvantage facing a freely flexible exchange rate system is that is can cause


A) overshooting
B) competitive devaluations
C) hedging
D) loss of monetary policy control

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