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The Proponents of Fixed Exchange Rates Argue That Flexible Exchange

Question 59

Multiple Choice

The proponents of fixed exchange rates argue that flexible exchange rates


A) hamper international trade because of uncertainty over what the exchange rate will be.
B) force a nation to use its domestic macroeconomic policies to maintain an exchange rate.
C) lead to trade protectionism.
D) a and b
E) a,b,and c

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