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Korvikt [17]
3 years ago
9

According to the Mundell–Fleming model, in an economy with flexible exchange rates, expansionary fiscal policy causes net export

s to ______, and expansionary monetary policy causes net exports to ______.
Business
1 answer:
maxonik [38]3 years ago
5 0

Answer: Decrease and Increase

Explanation:

According to the Mundell–Fleming model, in an economy with flexible exchange rates, expansionary fiscal policy will cause the net exports to decrease. Expansionary fiscal policy shifts the IS curve rightwards, as a result BOP surplus created in the economy. So, exchange rate decreases to shift the BOP back to its initial position. As a result of lower exchange rate, exports falls. Hence, net exports decreases.

Expansionary Monetary policy will cause the net exports to increases. Expansionary Monetary policy shifts the LM curve rightwards, as a result BOP deficit created in the economy. So, exchange rate increases to shift the BOP back to its initial position. As a result of higher exchange rate, exports increases. Hence, net exports increases.

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Suppose that the price index in 1999 was 170 and your salary was $44,000. Suppose in 2016 the consumer price index will be 290.
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Answer:

$75,240

Explanation:

Given that,

Consumer price index in 1999 = 170

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Consumer price index in 2016 = 290

Therefore, the required salary is calculated as follows:

= Salary in 1999 × (Consumer price index in 2016 ÷ Consumer price index in 1999)

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Hence, the amount of salary have to earn in 2016 in order to equal your 1999 real income is $75,240.

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2 years ago
Jefferson's recently paid an annual dividend of $1.31 per share. The dividend is expected to decrease by 4% each year. How much
Vlad [161]

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$6.29

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8 0
3 years ago
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What is the opposite of a non convertible currency?
Cerrena [4.2K]
The opposite of a non convertible currency would be a convertible one

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PSYCHO15rus [73]

Answer:

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