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Which of the Following Results from a Flexible Exchange Rate

Question 19

Multiple Choice

Which of the following results from a flexible exchange rate system?


A) A country is more restricted in its own monetary policy.
B) Inflation is more likely to be self-correcting as compared to a fixed exchange rate system.
C) There is a greater risk in international trade because changes in the exchange rate can adversely affect profit.
D) Unemployment is more likely to be self-correcting as compared to a fixed exchange rate system.

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