Adopting which kind of an exchange rate regime moderates inflationary pressures in a country?
A)Nominal
B)Pegged
C)Pure "free float"
D)Clean float
E)Real

Question

Quizplus · Accepted Answer

Evidence shows that adopting a pegged exchange rate regime moderates inflationary pressures in a country. An International Monetary Fund study concluded that countries with pegged exchange rates had an average annual inflation rate of 8 percent, compared with 14 percent for intermediate regimes and 16 percent for floating regimes.

Adopting Which Kind of an Exchange Rate Regime Moderates Inflationary