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    Macroeconomics Study Set 39
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    Exam 13: The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime
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    In the Mundell-Fleming Model, the Domestic Interest Rate Is Determined
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In the Mundell-Fleming Model, the Domestic Interest Rate Is Determined

Question 32

Question 32

Multiple Choice

In the Mundell-Fleming model, the domestic interest rate is determined by the:


A) intersection of the LM and IS curves.
B) domestic rate of inflation.
C) world rate of inflation.
D) world interest rate.

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