Question: Which statement is TRUE? 1. The greater the capital mobility in an economy, the more the money supply is reduced by monetary policy. 2. The

Which statement is TRUE?

1. The greater the capital mobility in an economy, the more the money supply is reduced by monetary policy.

2. The lesser the capital mobility in an economy, the lesser the money supply is increased by fiscal policy.

3. The lesser the capital mobility in an economy, the more the money supply is increased by fiscal policy.

4. The greater the capital mobility in an economy, the lesser the money supply is reduced by monetary policy.

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