Monetary Policy Is More Powerful Than Fiscal Policy Under ________

question 38

Multiple Choice

Monetary policy is more powerful than fiscal policy under ________ exchange rates due to the amplifying effect from changes in interest rates to exchange rates to ________.

• A)fixed,monetary accommodation
• B)fixed,net exports
• C)flexible,monetary accommodation
• D)flexible,net exports

---

Definitions:

Repair Costs

Expenses incurred to fix or restore damaged or worn-out goods or property to their original condition.

Legal Action

A process by which a court of law is engaged to pursue a legal remedy, often involving litigation.

Differing Standards

Variations in rules, regulations, or norms across different areas, organizations, or systems.

Bailments

involve the temporary transfer of possession of personal property from one party to another, under a contract, for a specific purpose.