All of the Following Are Major Drawbacks of a Fixed

question 58

Multiple Choice

All of the following are major drawbacks of a fixed exchange rate EXCEPT that:

• A)exchange controls must be imposed at the cost of administrative red tape and corruption.
• B)resources must be diverted to the accumulation of large foreign exchange reserves.
• C)monetary policy cannot be used to stabilize output and the inflation rate.
• D)commerce among countries is more uncertain and riskier.

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Definitions:

Punishment

A method used in organizational context to reduce undesirable behaviors by applying negative consequences or removing positive ones.

Operant Conditioning

An instructional process in which the power of a behavior is influenced by the provision of rewards or the imposition of punishments.

Classical

Referring to the traditional or established principles in a field, or creative works of acknowledged excellence and enduring value.

Environmental Events

Occurrences in the natural world that can have significant impacts on ecosystems and human societies.