Compare the Effectiveness of Fiscal Policy in an Open Economy

question 161

Essay

Compare the effectiveness of fiscal policy in an open economy with mobile international capital to fiscal policy in a closed economy.Why is it different? Use an appropriate diagram to illustrate your answer.

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Definitions:

Sustainable Products

Goods produced in ways that do not deplete natural resources or harm the environment, often associated with ethical consumerism.

New Business Models

Innovative structures for the creation, delivery, and capture of value by businesses in response to shifting market demands.

Chief Sustainability Officer

A top executive position responsible for integrating and managing a company's environmental and social sustainability initiatives.

Responsibilities

Obligations or duties that individuals, organizations, or governments are expected to fulfill or carry out.