In the Mundell-Fleming model, the exogenous variables are
a. government spending, taxes, and income.
b. the exchange rate and the price level.
c. the price level, the world interest rate, monetary policy, and fiscal policy.
d. the world interest rate, the price level, and the exchange rate.
e. none of the above.
C
You might also like to view...
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
What is the tragedy of the commons? Give two examples, including one from your state
What will be an ideal response?
When it is cheaper for one firm to produce a particular product, ____ exist(s)
a. economies of scale b. economies of scope c. diminishing marginal returns d. cross-subsidization
In a monopolistically competitive market, having a large number of firms in the market means that
A) no firm attempts to take into account the reaction of rival firms. B) individual firms will have a large portion of the market giving them monopoly power. C) firms will get together and collude because this will be the only way to earn monopoly profits. D) firms will cooperate with each other to drive competitors out of the market.