In a two-country model with floating exchange rates and perfectly mobile capital, an increase in fiscal spending by country A results in
A) a locomotive effect in country B.
B) a beggar-thy-neighbor effect in country B.
C) a crowding-out effect in country B.
D) a crowding-out effect in country A.
Answer: A
Business
You might also like to view...
The economic profit generated by a company is its ________
A) (capital x cost of capital) / net profit B) net profit / (capital x cost of capital) C) net profit + (capital x cost of capital) D) net profit - (capital x cost of capital) E) (capital x cost of capital) - net profit
Business
In UAW v. Johnson Controls, ________
a) must allow women to work in the lead exposed environment b) could be liable to employees' children born with birth defects c) are not liable if the employees sign an informed disclaimer d) a&b e) all
Business