The difference between a fixed and a floating exchange rate regime is that with a
rate system, the ______, whereas with a ___ rate system it does not.
A) floating; government can use independent fiscal policy; fixed
B)
C)
floating; central bank retains its ability to use independent monetary policy;
fixed
fixed; central bank retains its ability to use independent monetary policy;
floating
D) fixed; government can use independent fiscal policy; floating
