The United States would be characterized as having:
A) a controlled domestic interest rate, a closed capital market and a flexible exchange rate.
B) a controlled domestic interest rate, an open capital market and a flexible exchange rate.
C) no control over the domestic interest rate, an open capital market and a flexible exchange rate.
D) a controlled domestic interest rate, an open capital market and a fixed exchange rate.

Question

Quizplus · Accepted Answer

The United States has a controlled domestic interest rate, an open capital market, and a flexible exchange rate. The Federal Reserve controls the interest rate through its monetary policy, the capital market is open to foreign investors, and the exchange rate is determined by market forces.

The United States Would Be Characterized as Having