If a Country Chooses to Have a Monetary Policy Oriented

question 72

Multiple Choice

If a country chooses to have a monetary policy oriented toward domestic goals and the freedom of international capital movements,then

• A)it can have a fixed exchange rate.
• B)it cannot have a fixed exchange rate.
• C)it cannot balance its current account.
• D)it cannot have a fiscal policy oriented toward domestic goals.
• E)it cannot control money supply growth.