Under an Exchange-Rate Targeting Rule for Monetary Policy,a Crawling Peg

question 96

Multiple Choice

Under an exchange-rate targeting rule for monetary policy,a crawling peg

• A)fixes the value of the domestic currency to a commodity such as gold.
• B)fixes the value of the domestic currency to that of a large,low-inflation country.
• C)allows the domestic currency to depreciate at a steady rate so that inflation in the pegging country can be higher than that of the anchor country.
• D)allows the domestic currency to depreciate at a steady rate so that inflation in the pegging country can be lower than that of the anchor country.

---

Definitions:

Warning Defect

is a term used in product liability to describe a situation where a product lacks adequate instructions or warnings, potentially leading to misuse or harm.

Product Liability

A legal concept where manufacturers, distributors, suppliers, and retailers are held responsible for any injuries their products cause.

Premarket Approval Process

A rigorous FDA approval process required for certain medical devices to assess their safety and effectiveness before they can be marketed.

Government Regulation

The imposition of rules and directives by government agencies designed to control and direct the behavior of individuals, businesses, and other entities in the public interest.