In a country with floating exchange rates and low capital mobility, an increase in government spending will be
A: highly effective.
B: less effective than with high capital mobility.
C: not effective at all.
D: harmful to the growth of real incomes.
A: highly effective.
B: less effective than with high capital mobility.
C: not effective at all.
D: harmful to the growth of real incomes.
举一反三
- In an open economy with fixed exchange rates, fiscal policy is most effective at increasing real income if A: capital mobility is perfect. B: capital mobility is high. C: capital mobility is low. D: fiscal policy is ineffective with fixed exchange rates.
- Which of the following statements is accurate?____. A: Fiscal policy is not effective with fixed exchange rates in an environment of highly responsive international capital flows. B: Fiscal policy is highly effective with fixed exchange rates and unresponsive international capital flows. C: Fixed exchange rates greatly constrain a country's ability to pursue an independent monetary policy. D: Contractionary monetary policy is effective under a fixed exchange rate regime.
- Which of the following statements is accurate? ____. A: Fiscal policy is not effective with fixed exchange rates in an<br/>environment of highly responsive international capital flows. B: Fiscal policy is highly effective with fixed exchange rates and<br/>unresponsive international capital flows. C: Fixed exchange rates greatly constrain a country's ability to pursue<br/>an independent monetary policy. D: Contractionary monetary policy is effective under a fixed<br/>exchange-rate regime.
- The weighted average exchange rate value of a country's currency is<br/>called the ________ exchange rate. A: nominal bilateral B: real bilateral C: nominal effective D: real effective
- The<br/>effective mobility is independent from oxide thickness. ()