Advocates of Flexible Exchange Rates Argue All of the Following

Multiple Choice

Advocates of flexible exchange rates argue all of the following except one.Which is the exception?

A) A country with flexible exchange rates cannot have a balance of payments deficit nor suffer its consequences.
B) The problems of inflation and unemployment can be addressed by a country without concerning itself with external disruptions.
C) World trade will be greater with flexible exchange rates because international prices will more accurately reflect market conditions.
D) Fixed exchange rates often distort the patterns of output and trade.
E) Flexible exchange rates automatically produce balance of payments surpluses which can be used,for instance,to pay off the national debt.