An advantage of a flexible exchange rate system relative to a fixed sy

An advantage of a flexible exchange rate system relative to a fixed system is that in a flexible rate system

a. currency speculation will be reduced.
b. balance of payments surpluses and deficits can be dealt with using fiscal policy, not monetary policy.
c. inflation will be minimized by the “discipline of the balance of payments.”
d. the price of imported goods will be kept relatively low.
e. none of the above.

ANSWER

E