A Situation in Which Maintaining the Peg Could Cause Worse

question 66

Multiple Choice

A situation in which maintaining the peg could cause worse harms to the economy (such as high interest rates) may sway even prudent and cautious central bankers to abandon it. This situation is called:

• A) the rolling peg.
• B) the contingency claim.
• C) a contingent commitment.
• D) a partial peg.

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Definitions:

Government Agencies

Bodies of the government responsible for the oversight and administration of specific functions, such as health, education, and welfare.

Policy Innovations

Policy innovations are new or significantly improved policies, strategies, or approaches aimed at solving public issues or improving governance and policy outcomes.

Ill-Conceived Changes

Modifications or alterations that are poorly thought out, leading to unintended negative consequences.

Policy Implementation

The act of putting into effect or enforcing policies, often involving the creation of programs, regulations, and guidelines.