The different effects of fiscal and monetary policy in an open economy with mobile capital hinges on their different effect on

a. price levels.
b. interest rates.
c. the money supply.
d. real GDP.

b

Economics

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According to UIP, when domestic and foreign interest rates are equal, the exchange rare of the home currency is expected to

a) fall b) remain contact c) rise d) not enough information is provided

Economics

Aggregate output is ________ related to autonomous consumer expenditure, and is ________ related to planned investment spending

A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively

Economics