Which of the Following Is True Under Fixed Exchange Rates

question 33

Multiple Choice

Which of the following is true under fixed exchange rates?

• A)Monetary policy is totally ineffective
• B)Fiscal policy is totally ineffective
• C)Expansionary monetary policy improves overall balance-of-payment situation
• D)Expansionary fiscal policy reduces the interest rate

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Definitions:

Entitled to Enforce

Having the legal right or standing to compel obedience to a law, rule, or obligation.

Certified

Official recognition or guarantee that an individual, organization, product, or document meets certain predefined standards.

Primarily Liable

Refers to the party who has the main responsibility to fulfill an obligation or debt in a legal agreement.

Secondarily Liable

Refers to the responsibility that falls on a party only after the primarily liable party has failed to fulfill their obligations.