Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is NOT true with fixed exchange rates and perfect capital mobility? Fiscal policy is very powerful. Monetary policy can be used

Which of the following is NOT true with fixed exchange rates and perfect capital mobility?

  1. Fiscal policy is very powerful.
  2. Monetary policy can be used to achieve internal balance.
  3. Sterilization is impossible.
  4. Monetary policy has almost no effect on the country's interest rate.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Moral Controversies In American Politics

Authors: Raymond Tatalovich, Warren Tatalovich

4th Edition

1317464427, 9781317464426

More Books

Students also viewed these Economics questions

Question

2. Listen to family members, and solve problems with them.

Answered: 1 week ago