An advantage of a flexible exchange rate is that O it prevents inflation O it permits the country to conduct an independent monetary policy It raises the value of the currency to a higher level than could be achieved with a pegged rate. O it causes wages in different regions of a country to be equal.

An advantage of a flexible exchange rate is that O it prevents inflation O it permits the country to conduct an independent monetary policy It raises the value of the currency to a higher level than could be achieved with a pegged rate. O it causes wages in different regions of a country to be equal.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter34: International Finance

Section: Chapter Questions

Problem 10QP

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