1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mario62 [17]
3 years ago
13

According to the Mundell-Fleming model, in a small open economy with flexible exchange rates, when the world interest rate falls

, the domestic interest rate in the small open economy will __________.
a. eventually fall.
b. remain unchanged.
c. rise.
d. cannot be determined.
Social Studies
1 answer:
Alex73 [517]3 years ago
7 0

The small open economy will witness the eventually falling of domestic interest.

Explanation:

Mundell-Fleming model explains the situation of the small open economy. The model has certain assumptions in which the chance of investment opportunities depends upon the rate of income and interest. In the small open economy, the size of the market is small in size when it is compared with a large open economy.

The constant output determines the effect of market forces like policies of the Government, Global market speculation of supply, and the demand for economic factors. The supply of money is stabilized only with the purchasing power of the people. This can be achieved only by the availability of cheaper interest rates against the fluctuating real exchange rate.    

You might be interested in
How will the economy recover after coronavirus
miv72 [106K]

Answer:

<h2>by increasing investment in all important sectors</h2>
4 0
3 years ago
Read 2 more answers
​__________ is a legally recognized and/or socially approved arrangement between two or more individuals that carries certain ri
soldi70 [24.7K]

Answer:

Marriage

Explanation:

5 0
3 years ago
Tommie has a high school diploma but is having exceptional difficulty finding a job because he has difficulty reading the classi
Mrrafil [7]

Answer:

functional illiteracy

Explanation:

Functional illiteracy involves individuals that do not have sufficient reading and writing skills such as to be able to handle tasks at work or in daily living. These individuals are not able to utilize or do not have reading and writing skills beyond basic levels as is required. This is the case of Tommie above who is not able to read advertisments properly or be able to apply for employment because he is functionally illiterate

4 0
3 years ago
"Conflict never brings development." Justify the statement.​
Orlov [11]

Its true

It will never bring development because you will never have an agreement. You need to have the same purpose so you can work together and have some progress. But it can also be wrong because what if you have two teams working on different projects? Your teams have a disagreement, but both are developing different solutions to the same problem. Still developing but with a different idea. It all depends on your perspective.

8 0
2 years ago
Which of the following events are examples of the positive effects that can result from racial and ethnic blending? i. Strong te
aleksley [76]

Answer:

The correct answer is C. II and III

Explanation:

C is correct because in here we have examples of tolerance and mutual respect, which is a basis for a normal mutual cohabitation.

Options I and IV are negative effects, because they are showing violence and tensions, which are not positive effects.

6 0
3 years ago
Read 2 more answers
Other questions:
  • How does Daoism compare with Confucianism? Confucianism teaches how to act toward others; Daoism teaches how to act toward onese
    15·2 answers
  • Mentally observing and judging oneself during sexual activities with a partner is called
    10·1 answer
  • What three primary educational opportunities enabled Paul to be effective in his missionary endeavors? (New Testament)
    15·1 answer
  • Janie is taking an exam in her history class. On the exam, there is a question that asks her to state and discuss the five major
    9·1 answer
  • Rita and her old friend Juan get into an argument. Juan eventually accuses Rita of ""acting white"". Rita is offended as she has
    10·1 answer
  • I need help and I do not get what Is like asking I just don't get it
    5·1 answer
  • Which country has the most diversified economy in the middle east
    15·1 answer
  • Which fallacy assumes that a conjunction of two realities or events is more likely than either one of the realities or events se
    13·1 answer
  • HURRY PLEASE 100 POINTS!!!!
    10·1 answer
  • How did the War of 1812 begin? What was the result of that initial<br> battle?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!