A Cost-Benefit Analysis Can Be Done to Assess Whether a Nation

Multiple Choice

A cost-benefit analysis can be done to assess whether a nation should fix its exchange rate. Which of the following is NOT correct?

A) If market integration or symmetry increase, then the net benefits of a fixed exchange rate increase.
B) If the net benefits are negative, economically speaking the nation should float.
C) If the net benefits are positive, economically speaking the nation should float.
D) If the net benefits turn negative, the nation should fix.