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In order to improve economic​ growth, a country should adopt which of the following exchange rate​ systems? A. Adopt a soft peg to the country that is growing the most. B. Fix their currency to the country that is growing the most. C. Allow their currency to float on the market. D. Adopt the​ country's currency that is growing the​ most; e.g.,​ dollarize, or adopt the Chinese renminbi. E. There is no superior​ system; each country has to decide what is best.

Respuesta :

Answer:

E. There is no superior​ system; each country has to decide what is best.

Explanation:

The exchange rate system refers to the method that is used to determine the exchange rate among the countries. The exchange rate helps in determining the rate of domestic currency in accordance with the other country's currencies. The exchange rate determines the rate that is used in the exchange of one currency with another. The foreign exchange market helps in determining the exchange rates of the countries.

Increasing real wages, reducing interest rates, and an increase in global growth are some of the factors that help in the improvement in economic growth. At the same time, there is no superior or inferior method of exchange rate systems that a country may adopt to improve economic growth.

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