Under a Fixed Exchange Rate System,an Expansionary Fiscal Policy Is

question 30

Multiple Choice

Under a fixed exchange rate system,an expansionary fiscal policy is

• A) more effective in an open economy than in a closed economy.
• B) less effective in an open economy than in a closed economy.
• C) equally effective in an open economy and in a closed economy.
• D) marginally effective in an open economy and completely ineffective in a closed economy.

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Definitions:

Present-Day Continents

The seven large landmasses on Earth as they exist currently, shaped by geological and environmental processes over millions of years.

Closely Related

Describes organisms that share a significant amount of genetic information due to recent common ancestry.

Cladogram

A diagram depicting the evolutionary relationships between different groups of organisms, showing how they diverged from a common ancestor.

Lines of Descent

The lineage or genealogical sequence tracing the transmission of genetic traits from ancestors to descendants.