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Economist Charles Kindleberger (a proponent of fixed exchange rates mentioned in the text) would ...

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Economist Charles Kindleberger (a proponent of fixed exchange rates mentioned in the text) would ...

Economist Charles Kindleberger (a proponent of fixed exchange rates mentioned in the text) would agree with which of the following statements?

▸

It is better to leave the international value of the domestic currency to the free market forces than to have to sacrifice domestic economic goals in order to support a certain predetermined value of the currency.

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There is too great a chance that the supported exchange rates will diverge significantly from the equilibrium exchange rates, which would create persistent problems and lead to an overall decrease in international trade.

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With no certainty of what one nation's currency will be worth in terms of other nations' currencies, international trade is held below what it could be.

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a and b

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Economics

Edition: 12^th

Author: Arnold

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