Fiscal policy is most effective in influencing aggregate demand

A. under a fixed exchange-rate system without sterilization.
B. under a floating exchange-rate system with a high degree of capital mobility.
C. under a floating exchange-rate system with a low degree of capital mobility.
D. under a fixed exchange-rate system with sterilization.


Answer: C

Economics

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Why is the level of output at which marginal revenue equals marginal cost the profit-maximizing output?

What will be an ideal response?

Economics