One attribute of a pegged exchange rate is that it leads to
A) a planned economy.
B) low inflation.
C) greater supply and demand.
D) a lack of monetary discipline.
E) a quick recession.

Question

Quizplus · Accepted Answer

A pegged exchange rate can lead to low inflation because it ties the currency's value to a stable foreign currency, which can help stabilize prices and control inflation.

One Attribute of a Pegged Exchange Rate Is That It