Because the Federal Reserve is not constrained by a fixed exchange rate...

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Question

Because the Federal Reserve is not constrained by a fixed exchange rate, it is free to set monetary policy without concerns about the effect on the value of the dollar. Based out of your own opinion, how would the Fed’s actions during the 2007-2009 financial crisis have been contained if the exchange rate had been fixed?
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Solution ID:350877 | This paper was updated on 26-Nov-2015

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