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Fiscal Policy Can Have Different Effects Depending Whether the Exchange

Question 126

Multiple Choice

Fiscal policy can have different effects depending whether the exchange rate is fixed or flexible. Who sets the Canadian exchange rate policy?

A) the U.S. Federal Reserve Bank
B) the Royal Bank of Canada
C) the Bank of Canada
D) the Toronto Stock Exchange

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Q125: Figure 16-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7554/.jpg" alt="Figure 16-1