Question
According to the Mundell-Fleming model, what will happen
in the short run if an expansionary fiscal policy is undertaken under flexible exchange rates and perfect capital mobility?Solution
According to the Mundell-Fleming model, in the short run, if an expansionary fiscal policy is undertaken under flexible exchange rates and perfect capital mobility, national income remains unchanged and the exchange rate appreciates. This is because the fiscal expansion leads to capital inflows, which cause the currency to appreciate, offsetting the expansionary effect on income.
Which type of connective tissue connects muscles to bones?
What is the major component of bile juice that helps in fat digestion?
- What type of disease is diabetes mellitus?
The terminal part of the carpel in a flower, which may be sticky, is the:
The contraction of the heart is also known as:
What is the primary function of the lymphatic system?
Which of the following is a technique by which plants get rid of waste material?
I. Storing as gum and resin
II. Removed in the falling leaves
- Which hormone is secreted when blood sugar levels are low?
What is the structural and functional unit of the kidneys?
Biopiracy refers to:
