With a Fixed Exchange Rate System,internal Balance Is Most Effectively

question 49

Multiple Choice

With a fixed exchange rate system,internal balance is most effectively achieved by using

• A) Expansionary monetary policy to combat recession
• B) Expansionary fiscal policy to combat inflation
• C) Contractionary monetary policy to combat recession
• D) Contractionary fiscal policy to combat recession

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Definitions:

Arbitrary

Stemming from a random selection or personal impulse instead of being guided by any logical rationale or structured approach.

Representation

The act of speaking or acting on behalf of someone or the depiction of something in art or literature.

Symbol

A symbol is a mark, sign, or word that indicates, signifies, or is understood as representing an idea, object, or relationship.