In the Mundell$-$Fleming Model, independent monetary policy means

Group of answer choices

Independent monetary policy requires that a country$$s currency must be pegged to a major currency like the US dollar or euro.

Politicians cannot dictate on monetary policy authorities

Independent monetary policy ensures that interest rates are kept constant or independently set regardless of economic conditions locally or abroad.

effective monetary policy. That is$,$ when a central bank intends to use monetary policy to influence prices or output, the policy will work as intended and not get reversed by some external or third factor

Monetary policy authorities cannot influence fiscal policy authorities