Under a Fixed Exchange Rate System and a Neutral Monetary

question 91

Multiple Choice

Under a fixed exchange rate system and a neutral monetary policy, an expansionary fiscal policy will be reinforced by an open economy because of the resultant capital _____ U.S. capital markets, which _____ interest rates.

• A) outflow from; reduces
• B) outflow from; increases
• C) inflow to; reduces
• D) inflow to; increases

---

Definitions:

Reliable

Describes something or someone consistently good in quality or performance, able to be trusted.

Valid

In research or testing, refers to the extent to which a tool or method accurately measures what it is supposed to measure.

Culturally Competency

The ability to understand, appreciate, and interact effectively with people of different cultures, ensuring respectful and appropriate communications and actions.

Representative Samples

A subset of a population that accurately reflects the demographics or characteristics of the entire group, essential for generalizable research findings.