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Proposals to Establish and Maintain Exchange Rate Target Zones Are

Question 55

Multiple Choice

Proposals to establish and maintain exchange rate target zones are intended to


A) facilitate the reestablishment of the gold exchange standard.
B) make it easier for individual countries to pursue domestic full-employment fiscal and monetary policies without regard to their international consequences.
C) ensure that the international volume of exports will equal the international volume of imports.
D) allow governments to independently choose whether to have fixed or flexible exchange rates.
E) minimize the extent to which exchange rates can fluctuate.

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