A Monetary Policy Strategy That Uses a Fixed Exchange Rate

question 94

Multiple Choice

A monetary policy strategy that uses a fixed exchange rate regime that ties the value of a currency to the currency of a large,low inflation country is called ________ targeting.

• A)exchange-rate
• B)currency
• C)monetary
• D)inflation

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Definitions:

Nominal Variable

A type of variable that represents categories with no intrinsic ordering or ranking among them, used for classification or grouping.

Variable

An element, feature, or factor that is liable to vary or change.

Arbitrary Numbers

Numbers chosen without any particular reason or pattern, often used in examples or theoretical discussions.

Interval Data

Data measured along a scale, in which each point is placed at a specific distance from a reference point, allowing for meaningful comparisons between data points.