According to the Mundell-Fleming Model, Import Restrictions in an Economy

question 7

Multiple Choice

According to the Mundell-Fleming model, import restrictions in an economy with flexible exchange rates cause net exports to ______ and in an economy with fixed exchange rates import restrictions cause net exports to ______.

• A) increase; increase
• B) increase; remain unchanged
• C) remain unchanged; remain unchanged
• D) remain unchanged; increase