Assume Perfect Capital Mobility

question 40

Multiple Choice

Assume perfect capital mobility.Under a fixed exchange rate system,expansionary fiscal policy causes the value of the dollar to _____,while expansionary monetary policy causes the value of the dollar to _____.

• A)rise; rise
• B)fall; fall
• C)fall; rise
• D)rise; fall

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Definitions:

Consolidation

The process of combining multiple parts into a single, more efficient or coherent structure, often referring to business operations or financial activities.

Task Agendas

A list or plan that outlines specific tasks or activities to be completed, often used to organize work or meetings.

Cohesion

The degree to which members of a group or team are united in their goals and work together harmoniously.

Team Goals

Specific objectives set by a group working together, which are intended to guide the team's efforts towards achieving a common purpose.