Under a Floating Exchange Rate Regime with a High Degree

question 1

Multiple Choice

Under a floating exchange rate regime with a high degree of capital mobility, a change in the exchange rate value of domestic currency following contractionary fiscal policy is most likely to:

• A)improve the current account.
• B)decrease the country's holdings of official reserve assets.
• C)cause a surplus in the financial account.
• D)induce inflow of foreign capital.

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Definitions:

Followership Style

The behavior or approach adopted by individuals while they are in the role of followers, acknowledging that different styles can substantially impact group dynamics and leadership outcomes.

Implementer

An individual or entity responsible for executing or putting into action specific plans, strategies, or policies.

Followership Typologies

classifies the different ways individuals follow or support leaders, highlighting various modes of followership behaviour.

Submissive-compliant

A behavioral tendency to obey or yield to others without resistance, often seen in hierarchical or authoritative contexts.