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.

---

Definitions:

Private Equity

Investments in companies whose shares are not publicly traded in a stock market.

Investment Banking

A sector of the banking industry that helps individuals and organizations raise capital and provides financial consultancy services.

Securities Act of 1933

A U.S. law enacted to ensure greater transparency in financial statements and to reduce fraud and manipulation in the securities markets.

Prospectus

A formal legal document that provides details about an investment offering for sale to the public, often containing data about the company's operations, financial condition, and management.