Under an Exchange-Rate Targeting Rule for Monetary Policy,a Crawling Peg

question 96

Multiple Choice

Under an exchange-rate targeting rule for monetary policy,a crawling peg

• A)fixes the value of the domestic currency to a commodity such as gold.
• B)fixes the value of the domestic currency to that of a large,low-inflation country.
• C)allows the domestic currency to depreciate at a steady rate so that inflation in the pegging country can be higher than that of the anchor country.
• D)allows the domestic currency to depreciate at a steady rate so that inflation in the pegging country can be lower than that of the anchor country.

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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or gender.

U.S. Population

The total number of people living in the United States, including all citizens, residents, and immigrants.

Poverty

A situation in which people or groups do not have enough money and basic necessities to meet the bare minimum living standards.

Gini Ratio

An indicator of the level of income distribution unevenness in a society, ranging from 0, which implies equal income for all, to 1, indicating one person possesses all the wealth.