In the Mundell-Fleming model of the SR small open economy (with completely sticky goods prices), a reduction in the nominal exchange rate will I. shift the IS curve to the right (in the r-Y space). II. not shift the IS* curve (in the e-Y space). Select one: O A. Only I is true. O B. Only II is true O C. Both I and are true O D. Neither I nor Il is true. In the Mundell-Fleming model of the SR small open economy (with completely sticky goods prices) under a flexible exchange rate regime, a domestic tax increase will I. shift the IS* curve to the right (in the e-Y space). II. not shift the LM* curve (in the e-Y space). Select one: O A. Only I is true. O B. Only Il is true O C. Both I and Il are true O D. Neither I nor Il is true.

In the Mundell-Fleming model of the SR small open economy (with completely sticky goods prices), a reduction in the nominal exchange rate will I. shift the IS curve to the right (in the r-Y space). II. not shift the IS* curve (in the e-Y space). Select one: O A. Only I is true. O B. Only II is true O C. Both I and are true O D. Neither I nor Il is true. In the Mundell-Fleming model of the SR small open economy (with completely sticky goods prices) under a flexible exchange rate regime, a domestic tax increase will I. shift the IS* curve to the right (in the e-Y space). II. not shift the LM* curve (in the e-Y space). Select one: O A. Only I is true. O B. Only Il is true O C. Both I and Il are true O D. Neither I nor Il is true.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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