A Fixed Exchange Rate: I

question 205

Multiple Choice

A fixed exchange rate: I. leaves monetary policy available for domestic stabilization.
II) is less expensive to maintain than a floating exchange rate.

• A) I only
• B) II only
• C) I and II
• D) neither I nor II

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Definitions:

Positive Illusions

Unrealistically favorable attitudes that people have towards themselves or to people that are close to them.

Goal-Setting

Involves the development of an action plan designed to motivate and guide a person or group toward achieving a specific objective.

Overly Optimistic

The tendency to hold an excessively positive outlook on one's abilities, outcomes, or future events.

Zeigarnik Effect

The psychological phenomenon whereby individuals remember uncompleted or interrupted tasks better than completed ones.