What Is Dollarization

question 44

Multiple Choice

What is dollarization?

• A) ​Using the dollar or some other foreign currency together with or instead of a domestic currency.
• B) ​Pegging the value of a foreign currency against the U.S.dollar.
• C) ​Pegging the value of a domestic currency against the market value of gold.
• D) ​Increasing the price of goods based on the supply of money.
• E) ​Maintaining an acceptable exchange rate based on government intervention.

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Definitions:

Exponential Smoothing Model

A forecasting technique that applies decreasing weights to past data, with the most recent data weighted most heavily.

Mean Absolute Deviation

A measure of variability that quantifies the average of the absolute deviations of each data point from the data set's mean.

Smoothing Constant

A parameter used in exponential smoothing methods to weigh the importance of historical data in forecasting.

Regression Method

A statistical process for estimating the relationships among variables, often used for prediction and forecasting.