Since the U.S. is organized as a market economy, the government sector does not play any role in economic activity

Which of the following statements is true of a flexible exchange rate system?

A) Market forces tend to undervalue a currency over time. B) Market forces tend to overvalue a currency over time. C) Market forces do not affect exchange rates between different currencies. D) Market forces tend to push the exchange rate of a currency to market clearing levels over time.

Barry Eichengreen (1992) blamed the severity of the worldwide depression from 1929 to 1933 on the countries who abandoned the rules of the gold standard during economic downturns

This abandonment relieved countries from the monetary discipline measures of the gold standard. Indicate whether the statement is true or false