If Exchange Rates Are Fixed and the Money Supply Is

question 227

Multiple Choice

If exchange rates are fixed and the money supply is held constant, a contractionary fiscal policy leads to a(n) _____ in interest rates and a capital _____.

• A) decrease; outflow
• B) decrease; inflow
• C) increase; inflow
• D) increase; outflow

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Definitions:

Database Password

A security feature used to restrict access to a database by requiring users to enter a secret key or password.

Exclusive Mode

In computing, it refers to a mode where a resource is used or accessed by only one user or process at a time.

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A feature in various software applications that allows users to easily browse and access different sections or features within the application.

Startup Option

A setting that determines how an application behaves when it is launched, possibly specifying a default document or state.