Multiple Choice
With fixed exchange rates,perfect asset substitutability,and perfect capital mobility
A) fiscal policy is ineffective.
B) monetary policy is ineffective.
C) both fiscal and monetary policy are effective.
D) both fiscal and monetary policy are ineffective.
Correct Answer:
Verified
Correct Answer:
Verified
Q24: If the United States follows an expansionary
Q25: During the global financial crisis of 2008-2009,it
Q26: External balance refers to<br>A)an economy which is
Q27: With perfect asset substitutability and capital mobility
Q28: Internal balance can be graphically represented as
Q30: Illustrate the effectiveness of monetary policy with
Q31: An increase in the money supply would<br>A)shift
Q32: Internal balance describes<br>A)equilibrium in the goods market.<br>B)a
Q33: Complete crowding out occurs when<br>A)monetary policy has
Q34: The LM curve represents combinations of income