subject
Business, 27.12.2019 01:31 waterdrop026

A) in the is-lm-fe (mundell-fleming) open-economy macroeconomic model with imperfect capital mobility, what does the term 'imperfect capital mobility' actually mean? (clue: why is the fe curve not drawn horizontal? ) b) in the is-lm-fe (mundell-fleming) open-economy macroeconomic model with imperfect capital mobility, explain what happens to the fe curve when the domestic currency appreciates on the foreign exchange market. (do not merely state what happens. explain clearly why it happens.) c) using diagrams, explain the consequences of a fiscal expansion funded by bond sales, within an economy operating under the assumptions of the is-lm-fe (mundell-fleming) open-economy macroeconomic model with imperfect capital mobility and floating exchange rates, (i) when the fe curve is more interest elastic than the lm curve. (ii) when the lm curve is more interest elastic than the fe curve. in each case, compare the predictions of each version of the model with those of the closed economy is-lm model. d) which of the versions of the model discussed in part c) is more applicable to an economy with a central bank managing liquidity to maintain a constant policy interest rate? explain your selection.

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 11:10
An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value
Answers: 2
question
Business, 22.06.2019 12:30
howard, fine, & howard is an advertising agency. the firm uses an activity-based costing system to allocate overhead costs to its services. information about the firm's activity cost pool rates follows: stooge company was a client of howard, fine, & howard. recently, 7 administrative assistant hours, 3 new ad campaigns, and 8 meeting hours were incurred for the stooge company account. using the activity-based costing system, how much overhead cost would be allocated to the stooge company account?
Answers: 1
question
Business, 22.06.2019 22:50
What is one of the advantages of getting a government-sponsored mortgage instead of a conventional mortgage
Answers: 1
question
Business, 22.06.2019 23:00
To increase sales, robert sends out a newsletter to his customers each month, letting them know about new products and ways in which to use them. in order to protect his customers' privacy, he uses this field when addressing his e-mail. attach bcc forward to
Answers: 2
You know the right answer?
A) in the is-lm-fe (mundell-fleming) open-economy macroeconomic model with imperfect capital mobilit...
Questions
question
Mathematics, 27.03.2020 05:16
Questions on the website: 13722363