To Defend a Pegged Exchange Rate That Overvalues Its Currency,a

question 137

Multiple Choice

To defend a pegged exchange rate that overvalues its currency,a country could:

• A) Discourage commodity exports
• B) Encourage commodity imports
• C) Purchase its own currency in international markets
• D) Sell its own currency in international markets

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Definitions:

Inescapable

Impossible to avoid or evade; unavoidably present or compulsory.

Interpersonal Communication

The process by which people exchange information, feelings, and meaning through verbal and non-verbal messages in face-to-face settings.

Implicit Rules

Unspoken, unwritten expectations and norms that govern behavior in groups and societies.

Explicit Rules

Clearly defined, written or spoken guidelines that dictate behavior or procedures within a group or society.