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Q3: According to the Mundell-Fleming model, under what conditions is the domestic interest rate in a small open economy equal to the world interest rate?a)When fiscal policy is expansionary.b)When the exchange rate is fixed.c)When capital mobility is restricted.d)When capital is perfectly mobile and the exchange rate is flexible.Correct answer is option 'D'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Q3: According to the Mundell-Fleming model, under what conditions is the domestic interest rate in a small open economy equal to the world interest rate?a)When fiscal policy is expansionary.b)When the exchange rate is fixed.c)When capital mobility is restricted.d)When capital is perfectly mobile and the exchange rate is flexible.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q3: According to the Mundell-Fleming model, under what conditions is the domestic interest rate in a small open economy equal to the world interest rate?a)When fiscal policy is expansionary.b)When the exchange rate is fixed.c)When capital mobility is restricted.d)When capital is perfectly mobile and the exchange rate is flexible.Correct answer is option 'D'. Can you explain this answer?.

Solutions for Q3: According to the Mundell-Fleming model, under what conditions is the domestic interest rate in a small open economy equal to the world interest rate?a)When fiscal policy is expansionary.b)When the exchange rate is fixed.c)When capital mobility is restricted.d)When capital is perfectly mobile and the exchange rate is flexible.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for B Com. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.

Here you can find the meaning of Q3: According to the Mundell-Fleming model, under what conditions is the domestic interest rate in a small open economy equal to the world interest rate?a)When fiscal policy is expansionary.b)When the exchange rate is fixed.c)When capital mobility is restricted.d)When capital is perfectly mobile and the exchange rate is flexible.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Q3: According to the Mundell-Fleming model, under what conditions is the domestic interest rate in a small open economy equal to the world interest rate?a)When fiscal policy is expansionary.b)When the exchange rate is fixed.c)When capital mobility is restricted.d)When capital is perfectly mobile and the exchange rate is flexible.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Q3: According to the Mundell-Fleming model, under what conditions is the domestic interest rate in a small open economy equal to the world interest rate?a)When fiscal policy is expansionary.b)When the exchange rate is fixed.c)When capital mobility is restricted.d)When capital is perfectly mobile and the exchange rate is flexible.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Q3: According to the Mundell-Fleming model, under what conditions is the domestic interest rate in a small open economy equal to the world interest rate?a)When fiscal policy is expansionary.b)When the exchange rate is fixed.c)When capital mobility is restricted.d)When capital is perfectly mobile and the exchange rate is flexible.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Q3: According to the Mundell-Fleming model, under what conditions is the domestic interest rate in a small open economy equal to the world interest rate?a)When fiscal policy is expansionary.b)When the exchange rate is fixed.c)When capital mobility is restricted.d)When capital is perfectly mobile and the exchange rate is flexible.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice B Com tests.