Adopting a Fixed Exchange Rate Promotes Trade If the Regime

question 61

Multiple Choice

Adopting a fixed exchange rate promotes trade if the regime is:

• A) semi-floating.
• B) indirectly pegged.
• C) directly floating.
• D) directly pegged.

---

Definitions:

Implicit Attitude

Unconscious beliefs or feelings toward an object, person, or subject that influence behavior and preferences.

Primitive Belief

Basic or early forms of belief that are often uncomplicated and rooted in superstition or the direct experiences of a society or individual.

Heuristic

A problem-solving strategy that uses a practical approach or shortcut that produces solutions that are not guaranteed to be optimal but are sufficient for immediate goals.

Balance Theory

A theory concerning the determinants of consistency in three-element cognitive systems.