QUESTION 23 In the IS/LM/BP model it is not possible to attain which of the following, simultaneously? Effective monetary policy and a flexible exchange rate A fixed exchange rate and effective fiscal policy A fixed exchange rate, perfect capital mobility and an independent monetary policy
QUESTION 23 In the IS/LM/BP model it is not possible to attain which of the following, simultaneously? Effective monetary policy and a flexible exchange rate A fixed exchange rate and effective fiscal policy A fixed exchange rate, perfect capital mobility and an independent monetary policy
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:QUESTION 23
In the IS/LM/BP model it is not possible to
attain which of the following, simultaneously?
Effective monetary policy and a flexible
exchange rate
A fixed exchange rate and effective fiscal
policy
A fixed exchange rate, perfect capital mobility
and an independent monetary policy
Internal and external balances
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