Multiple Choice
In the Mundell-Fleming model:
A) the exchange-rate system must have a floating exchange rate.
B) the exchange-rate system must have a fixed exchange rate.
C) it makes no difference whether the exchange-rate system has a floating or a fixed exchange rate.
D) the behaviour of the economy depends on whether the exchange-rate system has a floating or fixed exchange rate.
Correct Answer:
Verified
Correct Answer:
Verified
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