If a Country Chooses to Establish Fixed Exchange Rates and an Independent

question 90

Multiple Choice

If a country chooses to establish fixed exchange rates and an independent monetary policy,it gives up the ability to have ________.

• A)free capital mobility
• B)an independent fiscal policy
• C)capital controls
• D)an independent physical policy

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Definitions:

Myelencephalon

The posterior part of the brainstem, comprising the medulla oblongata, involved in regulating vital bodily functions.

Medulla Oblongata

A part of the brainstem involved in autonomic functions, such as breathing, heart rate, and blood pressure.

Telencephalon

The largest part of the brain, responsible for voluntary motor function, cognition, emotion, and sensory processing.

Cranial Nerve VII

Also known as the facial nerve, it controls the muscles of facial expression, convey taste sensations from the anterior two-thirds of the tongue, and supply the lacrimal and salivary glands.