Which of the Following Statements Is (Are)correct? the Mundell-Fleming Model

question 12

Multiple Choice

Which of the following statements is (are) correct? The Mundell-Fleming model is

• A)a new closed-economy model.
• B)implicitly assumes a fixed domestic price level.
• C)is an open-economy version of the IS-LM model.
• D)Both b and c

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Definitions:

Mediation

A conflict resolution technique involving a neutral third party who helps disputing parties find a mutually acceptable solution.

Arbitration

The process whereby a neutral third party issues a binding decision to resolve a dispute.

Negotiate

The process of discussing something with someone to reach an agreement or compromise.

Agreements

Formal arrangements made between two or more parties that specify and regulate the terms of a relationship or transaction.