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.

---

Definitions:

Water Processes

Encompasses the various physical phenomena involving water, including its cycle through the environment (evaporation, condensation, precipitation) and its role in shaping the Earth's surface (erosion, deposition).

Overlapping Spheres

Conceptual representation of how different parts or spheres of an ecosystem or the Earth intersect and interact with each other.

Lithosphere

The rigid outer layer of the Earth, composed of the crust and the upper part of the mantle.

Biosphere

The spherical zone that includes life and all of the places life can exist on, below, and above Earth’s surface.