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

question 119

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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