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:

Social Classes

Categories of a society divided based on social and economic status, affecting individuals' lifestyles, education opportunities, and occupational prospects.

Concurrent Validity

A measure of how well a particular test correlates with a previously validated measure, assessed at the same point in time.

Thinking

The process of considering or reasoning about something, involving the manipulation of information to solve problems, make decisions, or engage in creative processes.

Personality Inventory

A questionnaire or other standardized instrument designed to reveal aspects of an individual's character or psychological makeup.