Toacther with large current account deficits, the Argentine govemment began running increasingly large budget deficits. How might this be structurally related t the choice of a foxed exchange rate regime? a) deficits were needed to finance capital outflow at the established rate b)with no monetary policy, fiscal policy became the only macroeconomic policy tool to fight recessions c) fiscal profligacy had nothing to do with the exchange rate, Argentina's political leadership was as irresponsible as its monetary leadership had been d)the debt allowed Argentina's government to import arms for an attempt at another war with Brittain A Moving to another question will save this response. [ i will 5 upvotes]
Toacther with large current account deficits, the Argentine govemment began running increasingly large budget deficits. How might this be structurally related t the choice of a foxed exchange rate regime? a) deficits were needed to finance capital outflow at the established rate b)with no monetary policy, fiscal policy became the only macroeconomic policy tool to fight recessions c) fiscal profligacy had nothing to do with the exchange rate, Argentina's political leadership was as irresponsible as its monetary leadership had been d)the debt allowed Argentina's government to import arms for an attempt at another war with Brittain A Moving to another question will save this response. [ i will 5 upvotes]
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Toacther with large current account deficits, the Argentine govemment began running increasingly large budget deficits. How might this be structurally related t the choice of a foxed exchange rate regime?
a) deficits were needed to finance capital outflow at the established rate
b)with no monetary policy , fiscal policy became the only macroeconomic policy tool to fight recessions
c) fiscal profligacy had nothing to do with the exchange rate, Argentina's political leadership was as irresponsible as its monetary leadership had been d)the debt allowed Argentina's government to import arms for an attempt at another war with Brittain A Moving to another question will save this response.
[ i will 5 upvotes]
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