the central bank gives up its ability to

By fixing the exchange rate, the central bank gives up its ability to

A.adjust

B.increase government

C.influence the economy through fiscal

D.depreciate the domestic

E.influence the economy through monetary

Answer: E. By fixing the exchange rate, the central bank does not allow the foreign exchange market to determine the exchange rate. With the exchange rate fixed, the central bank cannot adjust the money supply using Monetary Policy.