Solved

An Advantage of Fixed Exchange Rates for a Country That

Question 56

Multiple Choice

An advantage of fixed exchange rates for a country that suffers from bouts of high inflation is:


A) it makes imports less expensive.
B) it establishes a credible low inflation policy.
C) it unties policymakers' hands so they can alter the reserves of the banking system as needed.
D) policymakers will have increased control over domestic interest rates.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents