Are fixed exchange rates better than flexible rates

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Reference no: EM131482716

Question: 1. Income is growing in West Germany while France is suffering a recession. How does this affect a flexible exchange rate between the two countries? How does your answer change if the exchange rate is fixed? What official actions are required? Do these actions increase or decrease the income gap between the two nations? Explain.

2. Are fixed exchange rates better than flexible rates? List the advantages and disadvantages of each system. Which do you think is best? Defend your choice.

Reference no: EM131482716

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