Which of the following are advantages of greater exchange rate flexibi
Which of the following are advantages of greater exchange rate flexibility?
a. The alleviation of potential conflicts that arise between the internal balance and the external balance.
b. The insulation of the domestic economy from economic shocks.
c. An expansion abroad would have contractionary effects on the domestic economy.
d. Both a and b
e. Both a and c
ANSWER
A
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