the ability of a country to increase or decrease interest rates in response to prevailing economic...
the ability of a country to increase or decrease interest rates in response to prevailing economic conditions is a feasure of
a. a fixed exchange rate
b. a pegged exchange rate
c. a currency board
d. floating exchange rate
e. none of the above
Homework Answers
Answer option D)
it is case of floating , flexible exchange rate, so that interest rate & price changes in response to changing Economic conditions
in fixed exchange rate, interest rate doesn't change due to change in Economy
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the ability of a country to increase or decrease interest rates
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