What is the difference between socialism and communism? What are some examples of countries that are largely socialistic and some that are communistic?
Communism is a socialist economic system that is controlled by a government that was not democratically elected (through free and open elections); whereas, socialist countries have governments which have been democratically elected. The old Soviet Union and its satellites were examples of communist nations. The only remaining communist nations are China, Cuba, North Korea and Vietnam. On the other hand, one can observe many democratic "socialist" states in varying degrees around the world. Examples of such countries would include the Scandinavian nations, like Norway and Denmark.
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What will be an ideal response?
In a flexible exchange rate regime, a reduction in the foreign interest rate (i*) will cause
A) the IP curve to shift to the left/up. B) the IP curve to shift to the right/down. C) a movement along the IP curve. D) neither a shift nor movement along the IP curve.