If a Country Moves from Fixed to Flexible Exchange Rates

question 15

Multiple Choice

If a country moves from fixed to flexible exchange rates, its macroeconomic policy

• A) is no longer restricted.
• B) is restricted, as it can only use fiscal policy to achieve its economic goals.
• C) is restricted, as it can only use monetary policy to achieve its economic goals.
• D) must follow policy directives from the IMF.

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Definitions:

Reproductive Parts

Organs or structures in organisms that are involved in producing offspring.

Angiosperm

A group of plants that have flowers and produce seeds enclosed within a carpel; the largest group of plants on Earth.

Carpels

The female reproductive organ of a flower, consisting of an ovary, a stigma, and usually a style.

Mature Ovary

The part of the female reproductive organ in angiosperms that has completed its development phase, typically containing the ovules and ready for fertilization.