Multiple Choice
According to the assignment rule, which of the following policy mixes is appropriate for a country with high unemployment, a balance of payments deficit, and fixed exchange rates?
A) Contractionary fiscal policy and contractionary monetary policy
B) Contractionary fiscal policy and expansionary monetary policy
C) Expansionary fiscal policy and expansionary monetary policy
D) Expansionary fiscal policy and contractionary monetary policy
Correct Answer:
Verified
Correct Answer:
Verified
Q22: Assume that the FE curve is flatter
Q23: If international capital flows are highly responsive
Q24: Consider a country with a fixed exchange
Q25: The sum of currency and bank deposits
Q26: The figure below shows an IS-LM-FE model
Q28: Assume that the FE curve is flatter
Q29: Why is a depreciation or devaluation of
Q30: The combination of currency and bank deposits
Q31: With fixed exchange rates, fiscal policy is
Q32: Which of the following indicates taking an