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Economics

Suppose a country switches from a flexible to a fixed exchange rate. Which of the following will occur as a result of this change?

A. Monetary policy will become a more effective tool for changing output.

B. a given change in government spending will now have a greater effect on output

C. Both fiscal and monetary policy will become more effective in changing GDP.

D. a given change in government spending will now have a smaller effect on output

E. Both fiscal and monetary policy will become completely ineffective in changing GDP.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91234043

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