Which of the following is NOT an advantage to exchange-rate targeting?
A) It provides a strong nominal anchor to keep inflation under control.
B) It provides an automatic rule for policy to help avoid the time-inconsistency problem.
C) It is simple and clear so that the public can easily understand it.
D) It increases the accountability of policymakers.
Correct Answer:
Verified
Q91: The German central bank gained international reserves
Q92: Exchange-rate targeting allows a central bank to
Q93: A central bank's attempt to prevent an
Q94: If a central bank does not want
Q95: Since the abandonment of the Bretton Woods
Q97: A monetary policy strategy that uses a
Q98: If a central bank does not want
Q99: If a central bank does not want
Q100: To keep from running out of international
Q101: When a country forgoes its own currency
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