Consider the Following Scenario

question 34

Multiple Choice

Consider the following scenario.The Swiss franc is fixed to the U.S.dollar.Market pressures lead to a move away from the peg.Which of the following can be used to restore the previous peg?

• A) The Swiss central bank can use a commodity such as gold to back the previous peg.
• B) The Swiss government can lower domestic prices to offset import pressures.
• C) Allow the exchange by the market and in the long run the peg will be restored.
• D) The Swiss central bank can purchase or sell U.S. dollars.

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Definitions:

Theory

A systematic explanation of an aspect of the natural world, grounded in observation, experimentation, and reasoning.

Observations

The active acquisition of information from a primary source, using the senses or tools and instruments for measuring and recording.

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effects on the dependent variable.

Childhood Aggression

Relates to aggressive behaviors and tendencies exhibited by children, which can include physical violence, verbal threats, or acts of defiance.