If a Country Chooses to Have a Monetary Policy Oriented

question 23

Multiple Choice

If a country chooses to have a monetary policy oriented toward domestic goals and a fixed exchange rate,then

• A)it can have the freedom of international capital movements.
• B)it cannot have the freedom of international capital movements.
• C)it cannot balance its current account.
• D)it cannot have fiscal policy oriented toward domestic goals.
• E)it cannot control money supply growth.

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Definitions:

Closed-Ended

Refers to a type of question or survey response option that limits answers to pre-defined choices, allowing for easier analysis but less detail.

Open-Ended

Describes questions, discussions, or formats that allow for unrestricted responses, fostering free expression of thoughts and opinions.

Reliable

Characterized by consistency, dependability, and accuracy, often used to describe something or someone that can be trusted to behave or perform well without failure.

Capitalist Economy

An economic system where trade, industries, and resources are primarily owned and operated by private individuals or companies for profit.