The Different Effects of Fiscal and Monetary Policy in an Open

question 40

Multiple Choice

The different effects of fiscal and monetary policy in an open economy with mobile capital hinges on their different effect on

• A)price levels.
• B)interest rates.
• C)the money supply.
• D)real GDP.

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Definitions:

Ballpoint Pens

Writing instruments with an internal ink reservoir and a ballpoint tip that rolls against the paper surface.

Copy Machine

An electronic device that makes copies of documents and images on paper, using light, heat, or chemicals.

Three Strikes Law

A criminal justice policy mandating long sentences for offenders convicted of three or more serious criminal offenses, aimed at deterring repeat offenders.

Harsh Sentencing Guidelines

Strict legal standards that mandate tough penalties and longer prison sentences for offenders.