Proponents of the fixed exchange rate system argue that a)flexible exchange rates may promote international trade, but under a fixed exchange rate system at least we know what the rates will be from day to day. b)under a flexible exchange rate system, there is too great a chance that the exchange rate will diverge from the equilibrium exchange rate. c)under a flexible exchange rate system, there is no way of knowing what the exchange rate is at any particular point in time. d)under a fixed exchange rate system, there would be only one currency. e)none of the above

Proponents of the fixed exchange rate system argue that a)flexible exchange rates may promote international trade, but under a fixed exchange rate system at least we know what the rates will be from day to day. b)under a flexible exchange rate system, there is too great a chance that the exchange rate will diverge from the equilibrium exchange rate. c)under a flexible exchange rate system, there is no way of knowing what the exchange rate is at any particular point in time. d)under a fixed exchange rate system, there would be only one currency. e)none of the above

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter28: International Trade And Finance

Section: Chapter Questions

Problem 15SQ

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