Q617
Compared to a fixed exchange rate system, an economy will benefit from a flexible exchange rate system because:
A.
it enables businesses to vary their export prices
B.
governments will not have to deflate the economy when balance of payments deficits occur
AnswerC.
it reduces the cost of acquiring foreign exchange
D.
it ensures that businesses never become uncompetitive in international markets
Answer: Option B
Solution
Answer: Option B
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