Multiple Choice
In the Mundell-Fleming model:
A) the exchange-rate system must have a floating exchange rate.
B) the exchange-rate system must have a fixed exchange rate.
C) it makes no difference whether the exchange-rate system has a floating or a fixed exchange rate.
D) the behaviour of the economy depends on whether the exchange-rate system has a floating or fixed exchange rate.
Correct Answer:
Verified
Related Questions
Q1: Exhibit: IS*-LM* Q1: In a small open economy with perfect Q2: In the Mundell-Fleming model, the exogenous variables![]()
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