a) A fixed exchange rate is preferable to a flexible exchange rate because aggregate economic policies will be more effective. it is less costly to finance balance-of- payments disequilibria. periodic devaluations or revaluations will be unnecessary. None of these.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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a) A fixed exchange rate is preferable to a
flexible exchange rate because
aggregate economic policies will be more
effective.
it is less costly to finance balance-of-
payments disequilibria.
periodic devaluations or revaluations will be
unnecessary.
None of these.
Transcribed Image Text:a) A fixed exchange rate is preferable to a flexible exchange rate because aggregate economic policies will be more effective. it is less costly to finance balance-of- payments disequilibria. periodic devaluations or revaluations will be unnecessary. None of these.
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