Using the IS-LM-BP Model with the Perfect Capital Mobility Assumption

question 12

Multiple Choice

Using the IS-LM-BP model with the perfect capital mobility assumption to answer this question.Which of the following statements is TRUE?
I.In a floating exchange rate regime,fiscal policy is effective in stimulating income.
II.In a floating exchange rate regime,monetary policy is effective in stimulating income.

• A) Only I is true.
• B) Only II is true.
• C) Both I and II are true
• D) Neither I nor II is true.

---

Definitions:

Legal Documents

Official papers that express or record contractual agreements, rights, or obligations enforceable by law.

Human Resource Management

The strategic approach to the effective management of people in an organization, so that they help the business gain a competitive advantage. It's designed to maximize employee performance in service of an employer's strategic objectives.

Motivating

The process of encouraging or inspiring individuals or groups towards achieving certain goals or desired behaviors.

Staffing

The process of hiring, positioning, and overseeing employees in an organization.