For This Question,assume That the Economy Is Operating in a Fixed

question 58

Multiple Choice

For this question,assume that the economy is operating in a fixed exchange rate regime and that perfect capital mobility exists.Given this information,which of the following will occur?

• A)the domestic and foreign interest rates must be equal.
• B)the central bank cannot use monetary policy to affect domestic output.
• C)an expansionary fiscal policy will require that the central bank increase the money supply.
• D)all of the above
• E)none of the above

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Definitions:

Human Capital

An organization's employees, described in terms of their training, experience, judgment, intelligence, relationships, and insight.

Economic Value

The worth of a good or service determined by the market, based on its ability to generate income or its utility to consumers.

Sustainable Competitive Advantage

A unique advantage that a company is able to sustain over time, protecting it from competition and allowing it to maintain higher margins or market share.

High-quality Employees

Workers who display excellence in their performance, reliability, and contribution to the organization.