Under Perfect Capital Mobility and a Floating Exchange Rate System,expansionary

Multiple Choice

Under perfect capital mobility and a floating exchange rate system,expansionary fiscal policy leads to

A) an increase in income and the interest rate.
B) no change in the interest rate and a fall in the trade balance.
C) no change in the interest rate and a decrease in income.
D) an increase in interest rates and a fall in the trade balance.
E) no change in interest rates and the exchange rate.