Multiple Choice
When a nation is economically integrated with trading partners, fixed exchange rates:
A) would be very harmful to the dynamic nature of trade.
B) could promote integration and economic efficiency by keeping transaction costs low.
C) would be the best choice if that nation became the dominant nation in the transactions.
D) would be adequate but have the disadvantage of discouraging trade because of uncertainty.
Correct Answer:
Verified
Correct Answer:
Verified
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