Suppose That Kenya Uses a Floating Exchange Rate and Experiences

question 1

Multiple Choice

Suppose that Kenya uses a floating exchange rate and experiences high capital mobility.Assume that Kenya is experiencing a recession and high inflation.In order to achieve overall balance, other things equal, Kenya will likely need to implement

• A) contractionary fiscal policy.
• B) wage and price controls.
• C) expansionary fiscal policy.
• D) contractionary monetary policy.

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Definitions:

Workload

The amount of work assigned to or required or expected from a person in a given time period.

Unrewarded

The state of not receiving a reward or acknowledgment for an action or behavior, often used in the context of learning and behavior modification.

Hassles

Everyday irritations and annoyances that individuals face, which can accumulate and affect mental and physical health.