Two Reasons for an Industrialized Country to Adopt an Exchange-Rate

question 68

Multiple Choice

Two reasons for an industrialized country to adopt an exchange-rate targeting regime are if the country ________ conduct successful monetary policy on its own,and if the country wants to ________ integration of the domestic economy with its neighbors.

• A)cannot;encourage
• B)cannot;discourage
• C)can;encourage
• D)can;discourage

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Definitions:

Variable Ratio

A reinforcement schedule where a response is reinforced after an unpredictable number of responses, leading to high and steady response rates.

Fixed Ratio

A schedule of reinforcement where a response is rewarded only after a specified number of responses, in behavioral psychology.

Variable Ratio

A reinforcement schedule that rewards a response after a random number of responses, making it very resistant to being extinguished.

Fixed Interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed, leading to a pattern of response immediately after the interval passes.