Solved

Pegging a Country's Exchange Rate to the Dollar Can Be

Question 86

Multiple Choice

Pegging a country's exchange rate to the dollar can be advantageous if


A) the country does not trade much with Canada.
B) investors believe the dollar to be more stable than the domestic country's currency.
C) a country wishes to conduct independent monetary policy.
D) imports are not a significant fraction of the goods the country's consumers buy.
E) demand for the goods being exported are not sensitive to changes in price.

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