With respect to a country having a fixed exchange rate which of the following statements is not corr...........

Economics- Phase (I & II) IS-LM

With respect to a country having a fixed exchange rate, which of the following statements is not correct?

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 economy is vulnerable to foreign but not domestic demand disturbances.

Pros and Cons of fixed vs. flexible exchange rate systems discussed with respect to the summary

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