If capital is perfectly mobile and a country has floating exchange rates, expansionary...

Question:

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

Factor Mobility:

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...

See full answer below.

Become a Study.com member to unlock this answer! Create your account

View this answer

Learn more about this topic:

Loading...
The Money Market: Money Supply and Money Demand Curves

from Economics 102: Macroeconomics

Chapter 11 / Lesson 10
264K

Related to this Question

Explore our homework questions and answers library