If a Country Chooses to Restrict International Capital Flows and to Maintain

Multiple Choice

If a country chooses to restrict international capital flows and to maintain a fixed exchange rate, then it must:

A) live with exchange-rate volatility.
B) control its citizens' access to world financial markets.
C) give up the use of monetary policy for purposes of domestic stabilization.
D) give up the use of fiscal policy for purposes of domestic stabilization.