In the Example of the Peg Between Britain and Germany

question 170

Multiple Choice

In the example of the peg between Britain and Germany, what would have been the case if Britain had adhered to the pegged exchange rate?

• A) It would not have had the option of raising its own rate.
• B) It would have been able to inflate its currency to keep output stable.
• C) It would not have been able to inflate its currency to keep output stable.
• D) It would have had to raise taxes and balance its budget.

---

Definitions:

Prefrontal Cortex

The frontal part of the brain involved in complex behaviors such as planning, decision making, and moderating social behavior.

Adolescent Behaviour

The range of actions and manners displayed by individuals navigating the transition from childhood to adulthood, characterized by exploration, identity formation, and emotional development.

Adolescence

The transition period from childhood to adulthood, marked by significant physical, psychological, and social changes.

Biologically Programmed

Pertains to behaviors, functions, or processes that are inherently determined by the genetic makeup of an organism.