A domestic monetary shock is least disruptive:
A)under a floating exchange-rate system.
B)under a fixed exchange-rate system with sterilization.
C)under a fixed exchange-rate system without sterilization.
D)under both fixed and floating exchange-rates.

Question

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The Answer of A domestic monetary shock is least disruptive:
A)under a floating exchange-rate system.
B)under a fixed exchange-rate system with sterilization.
C)under a fixed exchange-rate system without sterilization.
D)under both fixed and floating exchange-rates.

A Domestic Monetary Shock Is Least Disruptive