In the Mundell-Fleming Model,all of the Following Are True EXCEPT

question 30

Multiple Choice

In the Mundell-Fleming model,all of the following are true EXCEPT:

• A)the intersection of the IS and LM curves determine the equilibrium exchange rate.
• B)the BP curves position is determined by the exchange rate.
• C)the policy choice between fixed and floating exchange rates shifts the BP curve.
• D)the extent of capital mobility determines the slope of the BP curve.
• E)all of the above are true.

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Definitions:

Quantity

A property that can exist as a multitude or magnitude, often measured and expressed as a number.

Confidence Interval

A range of values derived from sample data that is likely to contain the value of an unknown population parameter, with a specified level of confidence.

Population Variance

The measurement of how data points in an entire population are spread out from the mean of the population.

Standard Deviation

The measure of the dispersion or variability in a set of numbers, indicating how spread out the numbers are from the mean.