The case for fixed exchange rates rests on arguments about monetary discipline,speculation,the lack of connection between the trade balance and exchange rates,and _______________.
A) automatic trade balance adjustments
B) uncertainty
C) the impracticality of the gold standard
D) monetary policy autonomy
E) the importance of the U.S. dollar

Question

Quizplus · Accepted Answer

Fixed exchange rates reduce uncertainty in international transactions, as they provide stability in exchange rates, which can encourage international trade and investment.

The Case for Fixed Exchange Rates Rests on Arguments About