Answered

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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.

Sagot :

GinnyAnswer

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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