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Roll over each item on the left to read the description. Identify whether each of the statements is an argument for or an argument against a specific exchange rate regime, then place each item in the correct place on the chart. 2/5 points awarded Government adjusts Fluctuation with limits Scored Reduces uncertainty Argument for Argument Against Market-based Floating exchange rate Uncertainty Market-based Unknown elements Continual government intervention Fixed exchange rate No uncertainty Continual government intervention Managed-float Difficult Fluctuation with limits Difficult Pegged exchange rate Limited options Government adjusts Limited options Target Zone Reduces uncertainty Unknown elements No uncertainty
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