Exchange-Rate Targeting Allows a Central Bank to ________,Thus This Will

question 59

Multiple Choice

Exchange-rate targeting allows a central bank to ________,thus this will ________ the probability of policy developing a time-inconsistency problem.

• A)be governed by a policy rule;decrease
• B)follow discretionary policy;decrease
• C)be governed by a policy rule;increase
• D)follow discretionary policy;increase

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Definitions:

Lee

Refers to a historical or notable figure, possibly Robert E. Lee, a Confederate general in the American Civil War, known for his leadership and military strategy.

Union General

A high-ranking officer in the Union army during the American Civil War.

Clear Defeat

A term used to describe a situation in which one party in a conflict is overwhelmingly beaten by the other, leaving no ambiguity about the outcome.

Confederacy

During the American Civil War, it refers to the southern states that seceded from the United States to form their own government in opposition to the Union.