Question

Which policy tool is more effective under a fixed

Q: Answer-Which policy tool is more effective under a fixed exchange rate regime according to the Mundell-Flem...

Under a fixed exchange rate regime, fiscal policy is more effective in influencing economic output, because monetary policy is constrained by the need to maintain the fixed exchange rate.

exchange rate regime according to the Mundell-Fleming Model?

A Monetary policy

B Fiscal policy

C Trade policy

D Exchange rate policy

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Which policy tool is more effective under a fixed

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