It has been shown that adopting a _____ 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

A pegged exchange rate regime can help moderate inflationary pressures by providing stability and predictability in exchange rates, which can help control inflation expectations and reduce the volatility that might lead to inflation.

It Has Been Shown That Adopting a _____ Exchange Rate