Which of the Following Is True of Monetary Contraction in a Fixed

question 63

Multiple Choice

Which of the following is true of monetary contraction in a fixed exchange rate system?

• A)It requires low interest rates.
• B)It increases the demand for money.
• C)It puts downward pressure on a fixed exchange rate.
• D)It leads to an inflow of money from abroad.
• E)It can lead to high price inflation.

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