Research in the Performance of Developing Nations with Exchange Rate

Multiple Choice

Research in the performance of developing nations with exchange rate pegs has shown that:

A) fixed exchange rates are 100% effective in curbing inflation and preventing hyperinflation.
B) fixed exchange rates are 100% ineffective in curbing inflation and preventing hyperinflation.
C) floating exchange rates are more effective in curbing inflation and preventing hyperinflation.
D) fixed exchange rates are neither necessary nor sufficient to curb inflation and prevent hyperinflation.