a) Show how fiscal policy works with capital mobility and fixed exchange rates b) How and why does monetary policy retain its effectiveness when there is perfect mobility of capital? c) It is sometimes said that a Central Bank is a necessary condition for a balance of payments deficit. What is the explanation for this argument?

a) Show how fiscal policy works with capital mobility and fixed exchange rates b) How and why does monetary policy retain its effectiveness when there is perfect mobility of capital? c) It is sometimes said that a Central Bank is a necessary condition for a balance of payments deficit. What is the explanation for this argument?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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