Given an Open Economy with High Capital Mobility, Which of the Following

question 65

Multiple Choice

Given an open economy with high capital mobility, which of the following statements is NOT true?

• A) Fiscal policy is strengthened under fixed exchange rates.
• B) Monetary policy is weakened under fixed exchange rates.
• C) Monetary policy is strengthened under floating exchange rates.
• D) Fiscal policy is strengthened under floating exchange rates.

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Definitions:

Mood Disorder

A psychological condition characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.

Depression

A mental health disorder characterized by persistently low mood, lack of interest in activities, and other symptoms that impair daily functioning.

Compulsions

Actions or thoughts repeatedly carried out by a person due to a compelling obsession.

Public Asylums

Institutions historically used for the care and confinement of individuals deemed mentally ill or otherwise societally undesirable.