If a Country Moves from Fixed to Flexible Exchange Rates

question 15

Multiple Choice

If a country moves from fixed to flexible exchange rates, its macroeconomic policy

• A) is no longer restricted.
• B) is restricted, as it can only use fiscal policy to achieve its economic goals.
• C) is restricted, as it can only use monetary policy to achieve its economic goals.
• D) must follow policy directives from the IMF.

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Definitions:

Chemoreceptors

Sensory receptors that respond to chemical stimuli, such as changes in the concentration of chemicals in the environment, and help organisms respond to taste and smell.

Photoreceptors

These are specialized cells in organisms that respond to light, allowing for the perception of vision and light-related responses.

Proprioceptors

Proprioceptors are sensory receptors located in muscles, tendons, and joints that provide information about body position and movement, enhancing coordination.

Exteroceptors

Exteroceptors are sensory receptors that receive stimuli from the external environment, such as light, sound, and temperature, providing information about the external world.