A reason why fixed exchange rate systems might lower growth is thatO they are more risky.Othey deter international trade.O inflation may be higher.monetary policy cannot be used.Soft pegs that are periodically adjusted are calledO managed floats.Osnakes.O crawling pegs.O hard pegs.

Exchange rate is the rate at which foreign currencies are tarded in foreign exchnage market . it has…

A reason why fixed exchange rate systems might lower growth is that they are more risky. Othey deter international trade. O inflation may be higher. O monetary policy cannot be used. Soft pegs that are periodically adjusted are called O managed floats. Osnakes. O crawling pegs. O hard pegs.

A reason why fixed exchange rate systems might lower growth is that they are more risky. Othey deter international trade. O inflation may be higher. O monetary policy cannot be used. Soft pegs that are periodically adjusted are called O managed floats. Osnakes. O crawling pegs. O hard pegs.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 30CTQ: Many developing countries, like Mexico, have moderate to high rates of inflation. At the same time,...

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Question

A reason why fixed exchange rate systems might lower growth is that
O they are more risky.
Othey deter international trade.
O inflation may be higher.
monetary policy cannot be used.
Soft pegs that are periodically adjusted are called
O managed floats.
Osnakes.
O crawling pegs.
O hard pegs.

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