Question

The Mundell-Fleming framework studies (A) _____ , (B)

Q: Answer-The Mundell-Fleming framework studies (A) _____ , (B) _________ economies in a world with (C) _____...

The Mundell-Fleming model is based on a very restrictive assumption. It considers a small open economy with perfect capital mobility and integrated financial markets. The model explains the causes of short-run fluctuations in aggregate income in an open economy.

_________ economies in a world with (C) _____ financial markets and (D) _____ capital mobility

A (A) small; (B) open; (C) integrated; (D) free

B (A) large; (B) open; (C) integrated; (D) free

C (A) small; (B) mercantilist; (C) integrated; (D) free

D (A) large; (B) open; (C) restricted; (D) free

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The Mundell-Fleming framework studies (A) _____ , (B)

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