In a Situation of Imperfect Short-Term Capital Mobility Between Countries

question 22

Multiple Choice

In a situation of imperfect short-term capital mobility between countries, if the BP curve Is flatter than the LM curve for country A, then an internal real sector shock in country A (such as an autonomous increase in real investment spending) will have a __________ Impact on A's national income under fixed exchange rates than under flexible exchange Rates; if the BP curve is steeper than the LM curve for country A, then that internal real Sector shock __________ impact on A's income under fixed exchange rates than under Flexible exchange rates.

• A) larger; will have a smaller
• B) larger; will also have a larger
• C) smaller; will also have a smaller
• D) smaller; will have a larger

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Definitions:

Population Proportion

A measure indicating the ratio of members in a defined category to the total population size.

Interval Estimate

A range of values derived from sample data within which a population parameter is estimated to lie, usually defined by two numbers representing the upper and lower limits.

Population Standard Deviation

A measure of the variability or dispersion of a population dataset, representing the square root of the variance.

Sample Size

The number of observations or data points collected in a subset of a population for the purpose of statistical analysis.