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The Figure Given Below Depicts the IS-LM-FE Model with Floating

Question 32

Multiple Choice

The figure given below depicts the IS-LM-FE model with floating exchange rates. The figure given below depicts the IS-LM-FE model with floating exchange rates.   The move from point A to point B is caused by: A) expansionary monetary policy. B) expansionary fiscal policy. C) contractionary monetary policy. D) contractionary fiscal policy. The move from point A to point B is caused by:


A) expansionary monetary policy.
B) expansionary fiscal policy.
C) contractionary monetary policy.
D) contractionary fiscal policy.

Correct Answer:

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