Assume perfect capital mobility. Under a fixed exchange rate system, expansionary fiscal policy causes income to _____,
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Question:
Assume perfect capital mobility. Under a fixed exchange rate system, expansionary fiscal policy causes income to _____, while under flexible exchange rates expansionary fiscal policy causes income to _____.
A. increase; increase
B. increase; remain unchanged
C. increase; decrease
D. remain unchanged; increase
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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