titaa0823 titaa0823

27-06-2024
Social Studies

Answered

In which situation is a country most likely to choose a flexible exchange rate for its currency?

A. A country wants to make sure that its currency is stable in all economic situations.
B. A country has a reputation for having a strong and stable economy over time.
C. A country believes that its currency will be in low demand in global markets.
D. A country worries that the value of its currency could rise and fall unpredictably.

Answer :

GinnyAnswer GinnyAnswer

27-06-2024

Final answer:

A country is likely to choose a flexible exchange rate when it is concerned about unpredictable currency value fluctuations.

Explanation:

Flexible exchange rate is a system where a currency's value is allowed to fluctuate based on the foreign exchange market. A country is most likely to choose a flexible exchange rate when it worries that the value of its currency could rise and fall unpredictably, leading to potential tradeoffs.

Learn more about Exchange Rate Policies here:

https://brainly.com/question/38243706

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