Which of the Following Is True of a System of Fixed

question 16

Multiple Choice

Which of the following is true of a system of fixed exchange-rates adopted by many countries?

• A)For each of these countries, monetary policy can be a powerful policy tool in managing aggregate demand.
• B)The countries will have large differences in their inflation rates.
• C)The goals and policies can differ substantially across the countries.
• D)The relative stability can promote higher levels of international trade.

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Definitions:

Cognitive Development

The construction of thought processes, including remembering, problem solving, and decision-making, from childhood through adolescence to adulthood.

Disequilibrium

The state of being out of balance or lacking stability, often used in contexts of cognitive development or economics.

Assimilation

In cognitive development, it's the process of taking in new information and incorporating it into existing cognitive schemas.

Accommodation

Adjusting one's behaviors or actions to incorporate the needs or expectations of others, or making physical space suitable for some purpose.