Multiple Choice
If a country maintains a fixed exchange rate by intervening in the foreign exchange market with no other actions by the central bank then it does not have a _____ policy.
A) expansionary fiscal
B) automatic fiscal
C) discretionary monetary
D) exchange rate
E) discretionary fiscal
Correct Answer:
Verified
Correct Answer:
Verified
Q33: Under a fixed exchange rate system and
Q34: Internal balance is always the same thing
Q35: If a central bank intervenes in the
Q36: As a government adopts an expansionary fiscal
Q37: In an open economy with fixed exchange
Q39: A decrease in interest rates would lead
Q40: An expansionary fiscal policy in an open
Q41: A currency union is a situation where
Q42: Which of the following statements would be
Q43: One problem associated with exchange controls is