Answer Happy

Question 19 (5 points) Comparing fixed with flexible exchange rates, a negative demand shock will: create a bust-boom cycle under each system create a bust-boom cycle only under flexible rates O create a bust-boom cycle only under fixed rates none of the options shown Question 20 (5 points) Under fixed exchange rates, when fiscal policy is counter-cyclical the speed of adjustment: will be faster compared to the case of non-systematic fiscal policy will be unchanged compared to the case of non-systematic fiscal policy will be slower compared to the case of non-systematic fiscal policy none of the options shown