Which of the following is NOT true with fixed exchange rates and perfect capital mobility?
A) Monetary policy is not effective in either the long-run or the short-run.
B) Sterilization is impossible.
C) Fiscal policy is very powerful.
D) Monetary policy is very powerful.
Correct Answer:
Verified
Q5: The figure below shows an IS-LM-FE model
Q6: Which of the following can be considered
Q7: Assuming no effect on exchange rates, which
Q8: There are limits to the ability of
Q9: The sum of currency and bank deposits
Q11: The figure below shows an IS-LM-FE model
Q12: The figure below shows an IS-LM-FE model
Q13: Consider a country that has an official
Q14: If international capital flows are not very
Q15: There are limits to the ability of
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