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20 Nov 2019
6. Which of the following statements regarding the effects of temporary and permanent fiscal policy are true? Assume that the economy starts in the long-run equilibrium. (Mark all statements that are true.) A. Temporary fiscal expansion has no effect on output under a floating exchange rate â¡ B. Permanent fiscal expansion has a smaller effect under a fixed exchange rate than under floating exchange rate exchange rate exchange rate â¡ C. Temporary fiscal expansion has a larger effect under a fixed exchange rate than under floating D. Permanent fiscal expansion has a larger effect under a fixed exchange rate than under floating E. Temporary and permanent fiscal expansion have the same effect on output under a fixed exchange rate F. Permanent fiscal expansion has the same effect under a fixed exchange rate and under floating G. Temporary fiscal expansion has the same effect under a fixed exchange rate and under floating H. Permanent fiscal expansion has no effect on output under a floating exchange rate exchange rate exchange rate â¡ l. Temporary fiscal expansion has no effect on output under a fixed exchange rate Temporary fiscal expansion has a smaller effect under a fixed exchange rate than under floating exchange rate J. â¡ K. Permanent fiscal expansion has no effect on output under a fixed exchange rate â¡ L. Temporary and permanent fiscal expansion have the same effect on output under a floating exchange rate
6. Which of the following statements regarding the effects of temporary and permanent fiscal policy are true? Assume that the economy starts in the long-run equilibrium. (Mark all statements that are true.) A. Temporary fiscal expansion has no effect on output under a floating exchange rate â¡ B. Permanent fiscal expansion has a smaller effect under a fixed exchange rate than under floating exchange rate exchange rate exchange rate â¡ C. Temporary fiscal expansion has a larger effect under a fixed exchange rate than under floating D. Permanent fiscal expansion has a larger effect under a fixed exchange rate than under floating E. Temporary and permanent fiscal expansion have the same effect on output under a fixed exchange rate F. Permanent fiscal expansion has the same effect under a fixed exchange rate and under floating G. Temporary fiscal expansion has the same effect under a fixed exchange rate and under floating H. Permanent fiscal expansion has no effect on output under a floating exchange rate exchange rate exchange rate â¡ l. Temporary fiscal expansion has no effect on output under a fixed exchange rate Temporary fiscal expansion has a smaller effect under a fixed exchange rate than under floating exchange rate J. â¡ K. Permanent fiscal expansion has no effect on output under a fixed exchange rate â¡ L. Temporary and permanent fiscal expansion have the same effect on output under a floating exchange rate
abinasmkLv2
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Elin HesselLv2
4 Aug 2019
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