Explain the Effectiveness of Monetary and ?Scal Policy Under ?Xed

question 74

Essay

Explain the effectiveness of monetary and ?scal policy under ?xed and under ?oating exchange rates.

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Definitions:

Tolerance

Decrease in response to a drug with the passage of time.

Decreased Response

A reduction in the body's reaction to a particular stimulus over time, often after repeated exposure.

Curare

A toxin derived from South American plants that acts as a neuromuscular blocking agent by inhibiting acetylcholine receptors at the neuromuscular junction, historically used as a paralyzing poison.

Acetylcholine

A neurotransmitter important for learning and memory, as well as muscle contraction, involved in many functions across the nervous system.