Which of the Following Statements Is Accurate

Multiple Choice

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.