Fiscal policies are
A. less effective when the exchange rate is flexible and the economy is open.
B. more effective when the exchange rate is flexible and the economy is closed.
C. less effective when the exchange rate is fixed and the economy is open.
D. less effective when the exchange rate is flexible and the economy is closed.
Answer: A
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What does the slope of the credit demand curve imply? When do movements along a credit demand curve occur?
What will be an ideal response?
An economy is at a full-employment equilibrium, and then the aggregate demand curve shifts leftward. As a result, the price level ________ and real GDP ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) falls; does not change
The ability to produce a good or service using fewer resources than other producers use is known as
a. absolute advantage. b. comparative advantage. c. comparative specialization. d. absolute specialization.
Which of the following evidence does not support the expected utility theory?
A) People assign disproportionately high weights to rare events. B) Risk-averse people do not engage in fair bets. C) Risk-loving people do not purchase insurance policies. D) Risk-neutral people engage in fair bets.