According to the Mundell-Fleming Model, Under Floating Exchange Rates a Fiscal

Multiple Choice

According to the Mundell-Fleming model, under floating exchange rates a fiscal expansion:

A) lowers the exchange rate, but a monetary expansion raises it.
B) raises the exchange rate, but a monetary expansion or an import restriction lowers it.
C) or an import restriction lowers the exchange rate, but a monetary expansion raises it.
D) or an import restriction raises the exchange rate, but a monetary expansion lowers it.