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.
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.
举一反三
- Which of the following statements is accurate? ____. A: Fiscal policy is not effective with fixed exchange rates in an<br/>environment of highly responsive international capital flows. B: Fiscal policy is highly effective with fixed exchange rates and<br/>unresponsive international capital flows. C: Fixed exchange rates greatly constrain a country's ability to pursue<br/>an independent monetary policy. D: Contractionary monetary policy is effective under a fixed<br/>exchange-rate regime.
- In an open economy with fixed exchange rates, fiscal policy is most effective at increasing real income if A: capital mobility is perfect. B: capital mobility is high. C: capital mobility is low. D: fiscal policy is ineffective with fixed exchange rates.
- According to the assignment rule, which of the following policy mixes<br/>is appropriate for a country with high inflation, a balance of<br/>payments deficit, and fixed exchange rates? ____. A: Expansionary fiscal policy and expansionary monetary policy B: Expansionary fiscal policy and contractionary monetary policy C: Contractionary fiscal policy and expansionary monetary policy D: Contractionary fiscal policy and contractionary monetary policy
- Which one of the following statements is the MOST accurate? () A: Fiscal policy<br/>affects employment less under fixed than under flexible exchange rate<br/>regimes. B: Fiscal policy has<br/>the same effect on employment under fixed and flexible exchange rate<br/>regimes. C: Fiscal policy<br/>cannot affect employment under fixed exchange rate but does affect<br/>output under flexible exchange rate regimes. D: Fiscal policy<br/>affects employment more under fixed than under flexible exchange rate<br/>regimes.
- Which of the following is NOT an element of fiscal policy? A: Government spending B: Government borrowing C: Taxation D: Exchange rates