Monetary Policy Is More Powerful Than Fiscal Policy Under ________

question 38

Multiple Choice

Monetary policy is more powerful than fiscal policy under ________ exchange rates due to the amplifying effect from changes in interest rates to exchange rates to ________.

• A)fixed,monetary accommodation
• B)fixed,net exports
• C)flexible,monetary accommodation
• D)flexible,net exports

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Definitions:

Decision Alternative

Different courses of action or strategies that a decision-maker can choose from in a decision-making process.

State of Nature Probabilities

The likelihoods of different possible outcomes or states in a probabilistic model, often used in decision making and forecasts.

Products

Items or services created through a process and offered to a market for consumption or use.

States of Nature

Possible scenarios or outcomes in decision theory, which are not under the control of the decision-maker.