Multiple choice question and give a short explination about your answer: In the Mundell-Fleming model what would happen with aggregate income if taxes are raised? a. income would fall or stay constant depending on the exchange rate regime in place. b. income would rise since taxes would alter the equilibrium of a goods market. c. no changes in the short run. d. income would rise in the long run.

Multiple choice question and give a short explination about your answer: In the Mundell-Fleming model what would happen with aggregate income if taxes are raised? a. income would fall or stay constant depending on the exchange rate regime in place. b. income would rise since taxes would alter the equilibrium of a goods market. c. no changes in the short run. d. income would rise in the long run.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 14QP

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