Multiple Choice
Under an exchange-rate targeting rule for monetary policy,a crawling peg
A) fixes the value of the domestic currency to a commodity such as gold.
B) fixes the value of the domestic currency to that of a large,low-inflation country.
C) allows the domestic currency to depreciate at a steady rate so that inflation in the pegging country can be higher than that of the anchor country.
D) allows the domestic currency to depreciate at a steady rate so that inflation in the pegging country can be lower than that of the anchor country.
Correct Answer:
Verified
Correct Answer:
Verified
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