Under a Fixed Exchange Rate Regime,what Would Be the Result

question 93

Multiple Choice

Under a fixed exchange rate regime,what would be the result if a country rapidly increased its money supply by printing currency?

• A) It would lead to increase in the worth of the currency.
• B) The prices of imports would become more attractive in the country.
• C) The country's goods would be highly competitive in world markets.
• D) Trade surplus in the country would increase.
• E) It would lead to price deflation in the country.

---

Definitions:

Democratic Leadership

A leadership style in which decision-making is shared among the group, often characterized by participative or consultative processes.

Maintenance Role

A function within a group that focuses on preserving social cohesion and ensuring the smooth operation of the group.

Leader-Member Relations

The dynamics and quality of the interaction between a leader and their team members, influencing team function and morale.

Situational Contingency

The concept that the effectiveness of leadership or decision-making strategies depends on situational factors or contexts.