“to increase the aggregate income level, a country which adopts a flexible exchange rate system with...

“to increase the aggregate income level, a country which adopts a flexible exchange rate system with imperfect capital mobility should implement expansionary fiscal policy”.
do you agree with this statement? why and why not? explain and show the graft and compare the effects of both policies (monetary and fiscal) on the aggregate income level.
show the graft and answer.

Expert Solution

Rahul Sunny answered 2 years ago

“To increase the aggregate income level, a country which adopts a flexible exchange rate system with...

“To increase the aggregate income level, a country which adopts a flexible exchange rate system with imperfect capital mobility should implement expansionary fiscal policy”. Do you agree with this statement? Why and why not? Explain and You need to show and compare the effects of both policies (monetary and fiscal) on the aggregate income level].

this question above .A country which adopts a fixed exchange rate system with perfect capital mobility...

this question above .A country which adopts a fixed exchange rate system with perfect capital mobility should implement expansionary monetary policy to increase the aggregate income level, Do you agree with this statement and why you agree..i want explaination.

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In a fixed exchange rate regime, an increase in the price level will cause which of...

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