Part 1 A disadvantage of a fixed exchange rate system is that O international investors cannot benefit from currency appreciations direct foreign investment becomes less profitable countries can import high inflation and unemployment from other countries fixed exchange rates are hard to maintain

Part 1 A disadvantage of a fixed exchange rate system is that O international investors cannot benefit from currency appreciations direct foreign investment becomes less profitable countries can import high inflation and unemployment from other countries fixed exchange rates are hard to maintain

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Part 1
A disadvantage of a fixed exchange rate system is that
international investors cannot benefit from currency appreciations
direct foreign investment becomes less profitable
countries can import high inflation and unemployment from other countries
fixed exchange rates are hard to maintain
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