Suppose a Country Switches from a Fixed to a Flexible

question 10

Multiple Choice

Suppose a country switches from a fixed to a flexible exchange rate.Which of the following will occur as a result of this change?

• A)monetary policy will become a less effective tool for changing output.
• B)a given change in government spending will now have a greater effect on output.
• C)both fiscal and monetary policy will become more effective in changing GDP.
• D)both fiscal and monetary policy will become completely ineffective in changing GDP.
• E)none of the above

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Definitions:

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Chaining Ability

The capacity to link together a series of actions or learning steps into a coherent and successful sequence.

Self-Awareness

The conscious knowledge of one’s own character, feelings, motives, and desires.

Generalization

The ability to apply learned skills or behaviors to different situations, settings, or contexts beyond the original learning environment.