An exchange rate regime in which the government may change the fixed rate in the face of a significant disequilibrium in the country's international position is called a(n):

Question

Quizplus · Accepted Answer

An adjustable peg exchange rate regime is fixed, but the government has the flexibility to adjust the fixed rate in response to significant changes in the country's international position. This allows for a degree of stability while still allowing for some flexibility to adjust to changing circumstances.

An Exchange Rate Regime in Which the Government May Change