Under an Exchange-Rate Targeting Rule for Monetary Policy,a Crawling Peg

question 96

Multiple Choice

Under an exchange-rate targeting rule for monetary policy,a crawling peg

• A)fixes the value of the domestic currency to a commodity such as gold.
• B)fixes the value of the domestic currency to that of a large,low-inflation country.
• C)allows the domestic currency to depreciate at a steady rate so that inflation in the pegging country can be higher than that of the anchor country.
• D)allows the domestic currency to depreciate at a steady rate so that inflation in the pegging country can be lower than that of the anchor country.

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Definitions:

Attitude-Behavior Link

The relationship between one's attitudes (feelings and beliefs) and one's actions, where attitudes are predictors of behavior under certain conditions.

Implicit Attitudes

Unconscious beliefs or feelings towards people, objects, or concepts, which can influence behavior and decision-making.

Directly Relevant Attitudes

Attitudes that are specifically related to and directly influence an individual's thoughts, feelings, and behaviour in a specific context.

Fear

An unpleasant emotional state triggered by the perception of danger, real or imagined.