Question
Consider easy (expansionary) fiscal policy done in a large openeconomy. As a result, world real interest rates will _______ and the realexchange rate will ________.
Consider easy (expansionary) fiscal policy done in a large openeconomy.
As a result, world real interest rates will _______ and the realexchange rate will ________.
a) rise; rise
b) fall; fall
c) rise; fall
d) fall; rise
Consider easy (expansionary) fiscal policy done in a large openeconomy.
As a result, world real interest rates will _______ and the realexchange rate will ________.
a) rise; rise
b) fall; fall
c) rise; fall
d) fall; rise
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
