"A monetary policy is not a policy tool under fixed exchange rates." Discuss
What will be an ideal response?
True, under fixed exchange rates, domestic asset transactions by the central bank can be used to alter the level of foreign reserves but not to affect the state of employment and output.
Economics
You might also like to view...
Government programs that automatically shift the government budget toward a deficit during recessions and a surplus during recoveries are called:
a. discretionary fiscal policy. b. automatic stabilizers. c. progressive taxation. d. price deflators.
Economics
GDP does not directly include:
a. the value of final goods and services produced, but not sold, during a period. b. the value of services rendered during a period c. the value of intermediate goods sold during a period. d. any of the above.
Economics