In a country that follows a policy of using a _____ exchange rate, the government determines the exchange rates, then adjusts macroeconomic policies to maintain these rates.
A) nominal
B) fixed
C) flexible
D) real

Question

Quizplus · Accepted Answer

A fixed exchange rate system involves a government or central bank setting a specific exchange rate for their currency and then taking the necessary steps to maintain that rate. This may involve adjusting interest rates, buying or selling their own currency, or implementing other economic policies.

In a Country That Follows a Policy of Using a _____