Multiple Choice
Fiscal policy is most effective in influencing aggregate demand:
A) under a floating exchange-rate system with a low degree of capital mobility.
B) under a fixed exchange-rate system with sterilization.
C) under a fixed exchange-rate system without sterilization.
D) under a floating exchange-rate system with a high degree of capital mobility.
Correct Answer:

Verified
Correct Answer:
Verified
Q5: Which of the following has exchange-rates permanently
Q6: International capital-flow shocks tend to be less
Q7: Which of the following statements is true?<br>A)A
Q8: Making effective monetary policy for the euro
Q9: Which of the following is most effective
Q11: Internal shocks cause less trouble with floating
Q12: Which of the following was a criterion
Q13: A domestic spending shock are likely to
Q14: Which of the following is NOT among
Q15: Which of the following is a drawback