Advocates of floating rate suggested it is favorable for economies for the following reasons EXCEPT that
A.it discourages attack from foreign exchange speculators because of the fact that exchange rate adjustment is
B.it helps stabilize the shock effect on unemployment in case of economic changes such as fall in export
C.it automatically matches the domestic inflation with ongoing foreign
D.it gives every country the opportunity to guide its own monetary conditions at home.
E.it brings the LR exchange rate to the level predicted by PPP without government policy
Answer: C
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