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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Definitions:

Accommodation

In psychology, the process of adjusting cognitive schemas to incorporate new information.

Piaget's Concept

Refers to the theory of cognitive development proposed by Jean Piaget, which describes how children construct a mental model of the world around them at different stages of their growth.

Infant

A very young child or baby, typically considered to be in the developmental stage from birth to one year of age.

Behaviorist

A psychological perspective focusing on observable behaviors and the ways they're learned, often disregarding internal mental states.