In the Mundell-Fleming model, all of the following are true EXCEPT:
a. the intersection of the IS and LM curves determine the equilibrium exchange rate.
b. the BP curves position is determined by the exchange rate.
c. the policy choice between fixed and floating exchange rates shifts the BP curve.
d. the extent of capital mobility determines the slope of the BP curve.
e. all of the above are true.
A
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The data in the above table show that when the price level is 120
A) the unemployment rate is below its natural rate. B) the unemployment rate is above its natural rate. C) money wages rates will rise in the future. D) the long-run aggregate supply curve will shift leftward in the future.
The main advantage of a corporate form of organization is that
A) shareholders have limited liability. B) shareholders have unlimited liability. C) shareholders are not subject to double taxation. D) all corporate profits must be distributed as dividends.