A) fixed exchange rates; (B) increase in government deficits due to higher interest rates

(A) fixed exchange rates; (B) lower demand for money due to higher interest rates leading to an increased demand for consumption good

(A) flexible exchange rates; (B) exchange rate depreciating

(A) flexible exchange rates; (B) exchange rate appreciating

(A) the exchange rate; (B) the exchange rate

(A) the exchange rate; (B) the interest rate

(A) the interest rate; (B) the exchange rate

(A) the interest rate; (B) the interest rate

(A) contraction ; (B) contraction

(A) contraction ; (B) expansion

(A) expansion ; (B) contraction

(A) expansion ; (B) expansion

The fixed exchange rate system imposes strict discipline on the central bank.

The economy is vulnerable to foreign but not domestic demand disturbances

The Taylor Rule schedule is irrelevant

Shifts in world interest rates can pose a risk to the sustainability of the fixed exchange rate

The Aggregate Supply Curve

The Battle of the Mark-ups

The Phillips Curve

Okun’s Law