Exchange-Rate Targeting Allows a Central Bank to ________,Thus This Will

question 59

Multiple Choice

Exchange-rate targeting allows a central bank to ________,thus this will ________ the probability of policy developing a time-inconsistency problem.

• A)be governed by a policy rule;decrease
• B)follow discretionary policy;decrease
• C)be governed by a policy rule;increase
• D)follow discretionary policy;increase

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Definitions:

Secondary Sector

The part of the economy that is concerned with transforming raw materials into finished or semi-finished products, often referred to as the industrial sector.

Tribal Society

A form of society structured around family ties, with social organization typically based on clans or tribes.

Division of Labor

The separation of a work process into a number of tasks, with each task performed by a separate person or group, leading to increased efficiency.

Services

Economic activities that produce intangible goods or benefits, such as healthcare, education, banking, and entertainment, as opposed to tangible physical products.