Multiple Choice
Assume an initial equilibrium position for the economy (at the three-way intersection of The IS, LM, and BP curves) , and also assume that the BP curve is vertical. This situation Is one where there is __________ of financial capital internationally, and, from this initial equilibrium, expansionary fiscal policy would initially lead to a balance-of-payments
__________.
A) perfect immobility; surplus
B) perfect immobility; deficit
C) perfect mobility; surplus
D) perfect mobility; deficit
Correct Answer:
Verified
Correct Answer:
Verified
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