When the Exchange Rate Fluctuates Around a Fixed Central Target,allowing

question 38

Multiple Choice

When the exchange rate fluctuates around a fixed central target,allowing for a moderate amount of fluctuation,while tying the currency to the target central rate,the exchange rate is under:

• A)a horizontal band.
• B)a crawling peg.
• C)a managed float.
• D)an independent float.
• E)a currency board.

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Definitions:

More Elastic

Describes a situation where the demand for a product or service is more sensitive to changes in price, meaning consumers are more likely to increase or decrease their quantity demanded in response to price changes.

Shoes in General

Footwear items designed to protect and provide comfort to human feet while offering varying degrees of style and fashion.

Own-price Elasticity

a measure of how much the quantity demanded of a good or service changes in response to a change in its price.

Number of Substitutes

The quantity of alternative products or services that consumers can choose from in a market.