If a Country Fixes the Exchange-Rate Value of Its Currency

question 126

Multiple Choice

If a country fixes the exchange-rate value of its currency, it will have to

• A) follow a highly expansionary monetary policy in order to maintain the convertibility of its currency.
• B) give up its monetary independence in order to maintain the convertibility of its currency.
• C) fix its domestic interest rates in order to maintain the convertibility of its currency.
• D) raise taxes in order to maintain the convertibility of its currency.

---

Definitions:

FR 10 Schedule

A fixed-ratio schedule of reinforcement where a response is rewarded only after it has been performed a specified number of times, in this case, ten times.

FR 40 Schedule

A type of fixed-ratio schedule in operant conditioning where a response is reinforced only after a specific number of responses have been made, in this case, every 40th response.

Operant Chamber

A laboratory apparatus used to study animal behavior in operant conditioning, allowing systematic presentation of stimuli and recording of responses; also known as a Skinner box.

Delayed Reinforcer

A reinforcement given some time after the desired behavior, which can still effectively strengthen the behavior despite the delay.