a fixed exchange rate regime imposes
A)social discipline on countries, thereby increasing the standard of living.
B)economic discipline on countries, thereby increasing gross national product.
C)political discipline on countries, thereby curtailing global opportunism.
D)monetary discipline on countries, thereby curtailing price inflation.
E)currency stability, thereby curtailing trade wars

Question

Quizplus · Accepted Answer

A fixed exchange rate regime imposes monetary discipline on countries by preventing excessive price inflation, which can have negative effects on the economy such as eroding purchasing power and discouraging foreign investment. This can have a stabilizing effect on the economy, particularly for developing nations where inflation can be particularly damaging.

A Fixed Exchange Rate Regime Imposes