Which One of the Following Statements Is the MOST Accurate

question 3

Multiple Choice

Which one of the following statements is the MOST accurate?

• A) Fiscal policy has the same effect on employment under fixed and flexible exchange rate regimes.
• B) Fiscal policy affects employment less under fixed than under flexible exchange rate regimes.
• C) Fiscal policy affects employment more under fixed than under flexible exchange rate regimes.
• D) Fiscal policy cannot affect employment under fixed exchange rate but does affect output under flexible exchange rate regimes.
• E) Fiscal policy can affect employment under fixed exchange rate regimes, but does not affect output under flexible exchange rate regimes.

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Definitions:

Logistics Department

A segment within a company responsible for managing the efficient flow of goods, services, and information from point of origin to point of consumption to meet customer requirements.

Operating Divisions

Parts of a company that focus on the core business functions, often segmented by product line, service area, or geographic location.

Variable Costs

Expenses that change in proportion to the level of activity or volume of production in a business.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rental fees, wages, and insurance payments.