Fixed exchange rates are seen as a mechanism for achieving the following two objectives
A) controlling inflation and economic discipline.
B) controlling unemployment and political discipline.
C) controlling economic stability and increasing gross national product.
D) controlling political stability and economic discipline.
E) controlling currency speculation and trade imbalances.

Question

Quizplus · Accepted Answer

Fixed exchange rates help control inflation by providing a stable currency value, which can prevent excessive money supply growth. They also impose economic discipline by requiring countries to maintain fiscal and monetary policies that support the fixed rate, often leading to more prudent economic management.

Fixed Exchange Rates Are Seen as a Mechanism for Achieving