Suppose that Kenya uses a floating exchange rate and experiences high capital mobility.Assume that Kenya is experiencing a recession and high inflation.In order to achieve overall balance, other things equal, Kenya will likely need to implement
A) contractionary fiscal policy.
B) wage and price controls.
C) expansionary fiscal policy.
D) contractionary monetary policy.

Question

Quizplus · Accepted Answer

The Answer of Suppose that Kenya uses a floating exchange rate and experiences high capital mobility.Assume that Kenya is experiencing a recession and high inflation.In order to achieve overall balance, other things equal, Kenya will likely need to implement
A) contractionary fiscal policy.
B) wage and price controls.
C) expansionary fiscal policy.
D) contractionary monetary policy.

Suppose That Kenya Uses a Floating Exchange Rate and Experiences