Under Fixed Rates, Which One of the Following Statements Is

question 13

Multiple Choice

Under fixed rates, which one of the following statements is the MOST accurate?

• A) Fiscal policy can affect output, employment and international reserves at the same time.
• B) Fiscal policy can affect only employment.
• C) Fiscal policy can affect only international reserves.
• D) Fiscal policy can affect only output and employment.
• E) Fiscal employment can affect only output and international reserves.

---

Definitions:

More Elastic

Describes a situation where a product or service's demand changes more significantly in response to a change in price.

Decrease Price

A pricing strategy where a company reduces the cost at which an item is sold in order to stimulate demand or gain competitive advantage.

Price-cost Margins

The difference between the selling price of a product and its cost of production, often expressed as a percentage.

Wine Merger

The combining of two or more companies engaged in the wine industry, aiming to increase market share, efficiency, or geographic reach.