Proponents of the Flexible Exchange Rate System Argue That Under

Multiple Choice

Proponents of the flexible exchange rate system argue that under a fixed exchange rate system,

A) there is too great a chance that the exchange rate will diverge from the equilibrium exchange rate.
B) nations that experience persistent trade deficits might be tempted to impose trade barriers.
C) nations might sacrifice their domestic economic policy goals for the sake of maintaining the exchange rate.
D) b and c
E) a,b,and c