Why Might a Country Choose to Maintain a Fixed Exchange

question 91

Multiple Choice

Why might a country choose to maintain a fixed exchange rate?

• A) to allow it to print money
• B) to reduce tariffs on its exports
• C) to discourage direct foreign investment
• D) to help it maintain low and stable inflation
• E) to consumption smooth

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Definitions:

Relative Frequencies

The ratio of the number of times a particular value occurs to the total number of observations.

Distribution

Distribution in statistics refers to the way in which values of a variable or observations are spread out or scattered across a range, showing the frequency of each value.

Sum

The result of adding two or more numbers or quantities together to get a total.

Relative Frequency Distribution

A statistical measure that shows the frequency of different outcomes in a dataset relative to the total number of outcomes.