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Which of the Following Is an Argument in Favour of Fixed

Question 5

Multiple Choice

Which of the following is an argument in favour of fixed exchange rates?


A) They add a degree of certainty to international trade.
B) They prevent instability in the export and import industries.
C) They discourage currency speculation.
D) They appeal to people who tend to equate the exchange rate with national prestige.
E) They enhance the effectiveness of monetary policy.

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