The exchange rate effects of fiscal policy are:
A. ambiguous because the price and income effects goes against the interest rate effect.
B. clear because the price and interest rate effects dominate the income effect.
C. clear because the price and income effects dominate the interest rate effect.
D. ambiguous because the price and interest rate effects goes against the income effect.
Answer: A
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A) regulatory forbearance; moral hazard B) regulatory forbearance; adverse hazard C) regulatory agnosticism; moral hazard D) regulatory agnosticism; adverse hazard
Another term for "economic models" is
A) economic systems. B) economic theories. C) economic science. D) economic institutions.
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