According to the Mundell-Fleming Model, Under

question 118

Multiple Choice

According to the Mundell-Fleming model, under:

• A) floating exchange rates, a monetary expansion raises income whereas a fiscal expansion does not, but under fixed exchange rates, a fiscal expansion raises income whereas a monetary expansion does not.
• B) both floating and fixed exchange rates, a monetary expansion raises income, but a fiscal expansion does not.
• C) both floating and fixed exchange rates, a fiscal expansion raises income, but a monetary expansion does not.
• D) floating exchange rates, a fiscal expansion raises income whereas a monetary expansion does not; but under a fixed exchange rate, a monetary expansion raises income whereas a fiscal expansion does not.

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Definitions:

Direct Communication

The process of conveying information or messages between parties without the use of intermediaries or media, ensuring clarity and immediacy in the exchange.

Covenant of Grace

A theological term used in Christian doctrine that denotes an agreement between God and humanity in which salvation is offered through faith in Christ.

Puritan Congregationalists

Members of a Protestant sect that arose in the 16th century advocating strict religious discipline along with the simplification of the ceremonies and creeds of the Church of England.

Covenanted Community

A community formed through a formal agreement or covenant, often characterized by shared beliefs, values, or objectives, particularly in a religious or social context.