Which one of the following statements is the MOST accurate? ()
A: Fiscal policy
affects employment less under fixed than under flexible exchange rate
regimes.
B: Fiscal policy has
the same effect on employment under fixed and flexible exchange rate
regimes.
C: Fiscal policy
cannot affect employment under fixed exchange rate but does affect
output under flexible exchange rate regimes.
D: Fiscal policy
affects employment more under fixed than under flexible exchange rate
regimes.
A: Fiscal policy
affects employment less under fixed than under flexible exchange rate
regimes.
B: Fiscal policy has
the same effect on employment under fixed and flexible exchange rate
regimes.
C: Fiscal policy
cannot affect employment under fixed exchange rate but does affect
output under flexible exchange rate regimes.
D: Fiscal policy
affects employment more under fixed than under flexible exchange rate
regimes.
举一反三
- Which of the following statements is accurate? ____. A: Fiscal policy is not effective with fixed exchange rates in an<br/>environment of highly responsive international capital flows. B: Fiscal policy is highly effective with fixed exchange rates and<br/>unresponsive international capital flows. C: Fixed exchange rates greatly constrain a country's ability to pursue<br/>an independent monetary policy. D: Contractionary monetary policy is effective under a fixed<br/>exchange-rate regime.
- Which of the following statements is accurate?____. A: Fiscal policy is not effective with fixed exchange rates in an environment of highly responsive international capital flows. B: Fiscal policy is highly effective with fixed exchange rates and unresponsive international capital flows. C: Fixed exchange rates greatly constrain a country's ability to pursue an independent monetary policy. D: Contractionary monetary policy is effective under a fixed exchange rate regime.
- Fiscal Expansion under a fixed exchange has what effect(s) on the economy:
- According to the assignment rule, which of the following policy mixes<br/>is appropriate for a country with high inflation, a balance of<br/>payments deficit, and fixed exchange rates? ____. A: Expansionary fiscal policy and expansionary monetary policy B: Expansionary fiscal policy and contractionary monetary policy C: Contractionary fiscal policy and expansionary monetary policy D: Contractionary fiscal policy and contractionary monetary policy
- For a country which has a relatively high rate of inflation and wants some form of pegged exchange rate, which of the following exchange rate regimes is the best choice? A: Fully fixed exchange rate B: Adjustable peg C: Crawling peg D: Fully convertible