Comparing Various Exchange Systems, Which System Offers a Nation the Least

question 129

Multiple Choice

Comparing various exchange systems, which system offers a nation the least control over monetary policy?

• A) flexible exchange rates and a closed economy
• B) a closed economy
• C) an open nonpeg
• D) an open peg

---

Definitions:

Reactivity

The degree to which the process of measurement itself affects the measurement and the subject's behavior.

Social Desirability

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, which can bias survey and research results.

Selection Bias

A distortion in statistical analysis resulting from the method of collecting samples, where the sample obtained is not representative of the population intended to be analyzed.

Responsiveness

The quality of reacting quickly and positively; being responsive to feedback or changes.