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Why would nations favor fixed vs. floating exchange rates for their currencies?

DQ 2

Why would nations favor fixed vs. floating exchange rates for their currencies? Why do some developing nations have a “fear of the float?”

DQ 1

The U.S. has historically low interest rates at present. How would you predict these would impact the value of the dollar on foreign exchange markets? How, in turn, would these low interest rates impact our balance of trade? Explain your answers.

 

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