Perfect capital mobility mixed with floating exchange rates means that
A) fiscal spending is completely ineffective.
B) monetary policy is completely ineffective
C) neither fiscal nor monetary policy will be effective.
D) both fiscal and monetary policies efficiencies will be maximized.
A
Economics
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When the real exchange rate decreases in the United States, then there is a(n) in U.S. demand for U.S. goods and a(n) in U.S. demand for Mexican goods.
a. decrease; increase b. increase; decrease c. increase; increase d. decrease; decrease
Economics
The "lemons problem" exists in the market for goods because
A) sellers tend to try to take advantage of buyers. B) buyers tend to try to take advantage of sellers. C) differences in the quality of the goods being exchanged. D) of moral hazard.
Economics