If capital is perfectly mobile and a country has floating exchange rates, expansionary ........policy will be ............and contractionary ..............policy will be .............
a) fiscal; reinforced; monetary; hampered
b) fiscal; hampered; monetary; reinforced
c) fiscal; reinforced; fiscal; hampered
d) monetary; hampered; monetary; reinforced
Mobility means ease of movement from one place to another. Factors or production are faced with mobility problems. For example, factors that affect labor mobility include family ties, living standards, level of income and security matters. In case a person is afraid of breaking family ties then labor will be immobile.
Answer and Explanation:
The correct answer is b fiscal; hampered; monetary; reinforced
Expansionary fiscal policies to be hampered include increased government spending and...
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from Economics 102: MacroeconomicsChapter 11 / Lesson 10