Comparing fixed to flexible exchange rate, the response of an economy to a temporary fall in foreign demand for its exports is
A) output actually falls less under fixed rate than under floating rate.
B) output actually falls more under fixed rate than under floating rate.
C) output actually remains the same under fixed rate than under floating rate.
D) the currency value grows in a fixed rate system and falls in a flexible system.
E) output grows in a fixed rate system and falls in a flexible system.
B
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