When the Exchange Rate Is

Multiple Choice

When the exchange rate is

A) flexible, purposeful stabilization is more difficult because monetary policy has no power at all to affect domestic output and employment.
B) fixed, purposeful stabilization is less difficult because monetary policy has no power at all to affect domestic output and employment.
C) fixed, purposeful stabilization is more difficult because monetary policy has no power at all to affect domestic output and employment.
D) a crawling peg, rather than fixed, purposeful stabilization is more difficult because monetary policy has no power at all to affect domestic output and employment.
E) fixed rather than crawling peg purposeful stabilization is more difficult because fiscal policy has no power at all to affect domestic output and employment.