An Exchange Rate Policy That Holds an Exchange Rate Constant

question 15

Multiple Choice

An exchange rate policy that holds an exchange rate constant over time, or pegged, is known as a(n)

• A) fixed exchange rate policy.
• B) floating exchange rate policy.
• C) laissez-faire exchange rate policy.
• D) managed floating exchange rate policy.
• E) interventionist exchange rate policy.

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Definitions:

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