Fiscal policy is most effective in influencing aggregate demand
A. under a fixed exchange-rate system without sterilization.
B. under a floating exchange-rate system with a high degree of capital mobility.
C. under a floating exchange-rate system with a low degree of capital mobility.
D. under a fixed exchange-rate system with sterilization.
Answer: C
Economics
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According to the contract theory of wages, firms and workers agree on a contract that fixes
a. money wages. b. real wages. c. money wages and employment. d. real wages and employment.
Economics
The tax code in the United States allows for the deductibility of mortgage interest, but not for interest on credit cards. Why is this difference allowed to exist?
What will be an ideal response?
Economics