Monetary policy is only effective in a country with floating exchange rates when capital is highly mobile.

Name: Monetary policy is only effective in a country with floating exchange rates when capital is highly mobile.
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Quizplus · Accepted Answer

Monetary policy can be effective in countries with both floating and fixed exchange rates, and its effectiveness is not solely dependent on the mobility of capital. It involves managing the supply of money and interest rates by central banks to influence economic activity.

Monetary Policy Is Only Effective in a Country with Floating