he IS/LM/BP analysis suggests that, if the BP curve is flatter than the LM curve and the exchange rate is flexible, expansionary fiscal policy will lead to _______ of the country's currency. This will make the fiscal policy _______ effective in influencing national income than if the country had a fixed exchange rate. Select one: a. a depreciation / more b. a depreciation / less c. an appreciation / more d. an appreciation / less

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Q3-19

The IS/LM/BP analysis suggests that, if the BP curve is flatter than the LM curve and the exchange rate is flexible, expansionary fiscal policy will lead to _______ of the country's currency.

This will make the fiscal policy _______ effective in influencing national income than if the country had a fixed exchange rate.
Select one:
a. a depreciation / more
b. a depreciation / less
c. an appreciation / more
d. an appreciation / less
 
 
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