Problem
1. Under a system of fixed exchange rates, is monetary policy or fiscal policy better suited for promoting internal balance? Why?
2. Under a system of floating exchange rates, is monetary policy or fiscal policy better suited for promoting internal balance? Why?
3. With fixed exchange rates, what impact does an expansionary monetary policy have on the nation's BOP? What about a contractionary monetary policy?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.