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In an Open Economy with Global Capital Markets and Mobile

Question 59

Multiple Choice

In an open economy with global capital markets and mobile capital:


A) a country has control over both its domestic money supply and exchange rate.
B) a country has control of either its domestic money supply or exchange, but not both.
C) a country only has control over its domestic money supply.
D) a country only has control over its exchange rate.

Correct Answer:

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