Which of the Following Is a Benefit of a fiXed

question 29

Multiple Choice

Which of the following is a benefit of a fixed exchange rate regime?

• A) Fixed exchange rates can have a strong disciplinary effect on domestic inflation.
• B) Countries that have a fixed exchange rate have a higher level of GDP than countries that
• C) Fixed exchange rates allow a gradual adjustment in the value of the exchange rate.
• D) Under fixed exchange rate regimes, the balance of payments always equals zero.

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Definitions:

Probability

A measure of the likelihood of a particular event or outcome in a set of possible events, typically expressed as a ratio between 0 and 1.

Air Quality Standards

Regulations set by governments to control the levels of pollutants in the air, ensuring it is safe to breathe and protective of public health and the environment.

Air Pollution

The presence of harmful substances in the air, often resulting from human activities, that can harm health and the environment.

Waste Management

The process of handling solid wastes, including collection, transportation, processing, recycling, and disposal.