: mitigated; exchange rate.Which of the following statements is true? A:Monetary policy is a powerful economic tool for a country with fixed exchange rates and high capital mobility. B:An expansionary monetary policy tends to increase the exchange rate value of the domestic currency in the short run. C:Fiscal policy for a country with floating exchange rates is more powerful with a high degree of capital mobility than with a low degree of capital mobility. D:Under floating exchange rates, external capital-flow shocks can have effects on internal balance by altering the exchange rate and the country’s international competitiveness.



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