Fiscal Policy Is Utterly Useless Under a Fixed Exchange Rate

question 17

True/False

Fiscal policy is utterly useless under a fixed exchange rate policy.

---

Definitions:

Straight-Line Method

An accounting method for calculating the depreciation of an asset, distributing its cost evenly across its useful life.

Interest-Bearing Note

A debt instrument that pays periodic interest payments to the holder until maturity, at which point the principal is repaid.

Bond Debenture

A type of unsecured debt instrument issued by a company to raise long-term funds, without collateral backing.

Corporation Issues Bonds

A financing activity where a corporation raises funds by issuing debt securities, known as bonds, to investors.