Under Fixed Rates, Which One of the Following Statements Is

question 56

Multiple Choice

Under fixed rates, which one of the following statements is the MOST accurate?

• A) Monetary policy can affect only output.
• B) Monetary policy can affect only employment.
• C) Monetary policy can affect only international reserves.
• D) Monetary policy can not affect international reserves.
• E) Monetary policy can only affect money supply.

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Definitions:

Imported

Goods or services brought into one country from another for sale.

Tariff

A tax imposed on imported goods and services, tariffs are used by governments to control trade, protect domestic industries, or generate revenue.

Imported Oil

Oil brought into a country from another country to meet its demand for energy and petroleum products.

Tariff

A tax imposed by a government on imports or exports of goods.