Because the Fed is not constrained by a fixed exchange rate, it is free to set monetary

Question:

Because the Fed is not constrained by a fixed it is free to set monetary policy without concerns about the effect on the value of the dollar.
a. How would the Fed’s actions during the
2007–2009 financial crisis have been constrained if the had been fixed?
b. The value of the dollar actually increased at some points during the 2007–2009 recessions. Is this increase the result you would have expected? If not, how can you explain this increase?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...