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Answer to Question #62652 in Macroeconomics for Asca
Question #62652
Mark policy tools in the Mundell-Fleming model that are not effective in the economy. (a) Lowering taxes in a flexible exchange rate regime.
(b) Lowering government expenditure in fixed exchange rate regime.
(c) A one-time devaluation of currency in a fixed exchange rate regime.
(d) Expansionary fiscal policy in flexible exchange rate regime.
(b) Lowering government expenditure in fixed exchange rate regime.
(c) A one-time devaluation of currency in a fixed exchange rate regime.
(d) Expansionary fiscal policy in flexible exchange rate regime.
Expert's answer
a,c,d
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