With flexible exchange rates

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With flexible exchange rates, trading partners usually are better off if they coordinate their monetary and fiscal policy. Coordination allows: Note: you may have to solve this one by eliminating possibilities.

A. Trading partners to use a fixed exchange system

B. Trading partners to use a fixed exchange system

C. Trading partners to use a system similar to the Bretton Woods agreement

D. Nations to trade using a barter system, since no currency needs to exchange hands

E. Trading partners to keep exchange rates relatively stable

Reference no: EM13999847

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