Under Fixed Exchange Rates, When Is Monetary Policy Inconsistent with Both

Multiple Choice

Under fixed exchange rates, when is monetary policy inconsistent with both internal and external balance?

A) When the economy has unemployment and a current account deficit
B) When the economy has unemployment and a current account surplus
C) When the economy has inflation and a current account deficit
D) When the economy has both inflation and high unemployment
E) When the economy has both high inflation and high unemployment