Question

In the Mundell-Fleming model with perfect capital mobility, what is the correct policy effectiveness assignment?

A Fiscal: effective under fixed ER, ineffective under floating ER; Monetary: ineffective under fixed ER, effective under floating ER
B Fiscal: ineffective under fixed ER, effective under floating ER; Monetary: effective under fixed ER, ineffective under floating ER
C Both policies effective under fixed ER; both ineffective under floating ER
D Fiscal: effective under both; Monetary: ineffective under both due to capital mobility
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