In the Mundell-Fleming model with a floating exchange rate and perfect capital mobility, expansionary fiscal policy does all of the following EXCEPT:
a. increase interest rates.
b. increase income.
c. increase the IS curve.
d. increase inflation.
A
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Which of the following increases in labor demand is due to a change in the price of a related resource?
A. A decrease in the price of wood decreases the cost of furniture, thus increasing the demand for furniture workers. B. Snowboarding increases in popularity, thus increasing the demand for the workers who make snowboards. C. A technological change increases output per worker in the computer industry, thus increasing the demand for computer workers. D. Software sales rise, thus increasing the demand for software developers.
"Disgruntled" workers who quit their jobs to find "a more reasonable boss" are experiencing
A) involuntarily unemployment. B) mismatch unemployment. C) cyclically unemployment. D) turnover unemployment.
Which of the following causes an increase in demand for a normal good?
A) increase in the price of a substitute B) increase in the price of a complement C) decrease in price D) decrease in income
A public university knows that demand from potential students is elastic. If the university wants to increase tuition revenue, it should
a. raise its tuition rate
b. hold its tuition rate constant and increase faculty salaries
c. increase its financial aid
d. lower its tuition rate
e. increase its enrollment