Problem
1. Why is the mercantilist argument for protection weakened by the adoption of a flexible exchange rate?
2. In what sense does a flexible exchange rate encourage national macroeconomic independence as opposed to the macroeconomic interdependence implied by a fixed parity?
3. A Keynesian views an appreciation as deflationary, whereas a monetarist views the same appreciation as expansionary. Why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.