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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