Which of the Following Is NOT True with Fixed Exchange

question 35

Multiple Choice

Which of the following is NOT true with fixed exchange rates and perfect capital mobility?

• A)Monetary policy is not effective in either the long-run or the short-run.
• B)Sterilization is impossible.
• C)Fiscal policy is very powerful.
• D)Monetary policy is very powerful.

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Definitions:

Epidemic

An outbreak of a disease that spreads rapidly and affects a large number of individuals within a population, community, or region.

Pandemic

An outbreak of a disease that occurs over a wide geographic area and affects an exceptionally high proportion of the population.

Incidence Rate

The frequency at which new cases of a condition or disease occur in a specific population over a particular period of time.

Health Department

A government agency at various levels (local, state, national) responsible for public health policies, regulations, and community health services.