In a country that fixes its exchange rate to the euro, monetary policy is _____ and fiscal policy is _____.

Name: In a country that fixes its exchange rate to the euro, monetary policy is _____ and fiscal policy is _____.
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Question

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In a fixed exchange rate system, the central bank cannot use monetary policy independently as it must maintain the exchange rate, thus monetary policy is hampered. Fiscal policy, however, can be used more freely to influence the economy, so it is reinforced.

In a Country That Fixes Its Exchange Rate to the Euro