A country with a strong economy wants to take advantage of global market forces when setting its economic policy. Its leaders decide that the country's
currency should be traded freely, with its value being determined by the global
supply and demand for it. The country hopes that its currency's value will
increase over time as other countries recognize that the currency is
supported by a strong, stable economy.
This economic situation is an example of a
exchange rate
A. deficit-weighted
B. flexible
ОО O
C. fixed
D. trade-weighted