An advantage of fixed exchange rates for a country that suffers from bouts of high inflation is:

Question

Quizplus · Accepted Answer

Fixed exchange rates establish a credible low inflation policy, which helps to anchor inflation expectations and reduce the likelihood of high inflation episodes. This can be particularly beneficial for countries that have experienced high inflation in the past, as it can help to rebuild confidence in the currency and the economy more broadly. While fixed exchange rates may make imports less expensive in some cases, this is not always a guarantee, and the other two options (C and D) are not necessarily advantages of fixed exchange rates in the context of inflation.

An Advantage of Fixed Exchange Rates for a Country That