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Which of the Following Statements Is True

Question 14

Multiple Choice

Which of the following statements is true?


A) When capital is mobile, imbalances arise slowly after a change in monetary policy.
B) When capital is immobile, imbalances arise rapidly after a change in monetary policy.
C) When capital is mobile, imbalances are usually pretty small.
D) When capital is immobile, imbalances are usually very large.
E) When capital is immobile, imbalances are usually pretty small.

Correct Answer:

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