Which of the Following Is NOT an Advantage to Exchange-Rate

question 11

Multiple Choice

Which of the following is NOT an advantage to exchange-rate targeting?

• A)It provides a strong nominal anchor to keep inflation under control.
• B)It provides an automatic rule for policy to help avoid the time-inconsistency problem.
• C)It is simple and clear so that the public can easily understand it.
• D)It increases the accountability of policymakers.

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Definitions:

Encoding

The process by which information is transformed into a format that can be stored and used in memory.

Seriation

The cognitive ability to arrange objects in sequential order based on a particular characteristic, such as size, color, or age.

Mainstreaming

An educational strategy that involves placing students with special needs in general education classrooms, promoting their inclusion in typical academic and social activities.

Encoding

The process of converting information into a form that can be stored in memory.