Multiple Choice
According to the Mundell-Fleming model, import restrictions in an economy with flexible exchange rates cause net exports to ______ and in an economy with fixed exchange rates import restrictions cause net exports to ______.
A) increase; increase
B) increase; remain unchanged
C) remain unchanged; remain unchanged
D) remain unchanged; increase
Correct Answer:

Verified
Correct Answer:
Verified
Q2: In a small open economy a decrease
Q3: In the Mundell-Fleming model with fixed exchange
Q4: A devaluation of a currency under a
Q5: The principal economic loss when a country
Q6: In a small open economy with a
Q8: In a small open economy with a
Q9: In a small open economy with perfect
Q10: The risk premium included in the interest
Q11: Suppose Congress cuts government spending in order
Q12: An increase in income generated by an