In the Mundell-Fleming Model with a Floating Exchange Rate and Perfect

question 10

Multiple Choice

In the Mundell-Fleming model with a floating exchange rate and perfect capital mobility,an increase in the money supply does all of the following EXCEPT:

• A)increase interest rates.
• B)increase income.
• C)increase the IS curve.
• D)increase inflation.

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Definitions:

Reinforcement

A process in behavioral psychology that strengthens a behavior by providing a consequence an individual finds rewarding.

Reinforcement

In behavior psychology, it's a stimulus or event that increases the likelihood of the repetition of the behavior it follows.

Variable-Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, used in behaviorist research.

Intermittently

Occurring at irregular intervals; not continuous or steady, often with pauses or breaks in between.