Suppose a country switches from a flexible to a fixed exchange rate. Which of the following will occur as a result of this change?
A. Monetary policy will become a more effective tool for changing output.
B. a given change in government spending will now have a greater effect on output
C. Both fiscal and monetary policy will become more effective in changing GDP.
D. a given change in government spending will now have a smaller effect on output
E. Both fiscal and monetary policy will become completely ineffective in changing GDP.