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Q5: In the Mundell-Fleming model, what is the impact of an independent monetary policy under a fixed exchange rate regime?a)It leads to changes in the balance of payments.b)It causes shifts in the IS curve.c)It results in changes in fiscal policy.d)It is ineffective due to capital flows and exchange rate adjustments.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
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Q5: In the Mundell-Fleming model, what is the impact of an independent monetary policy under a fixed exchange rate regime?a)It leads to changes in the balance of payments.b)It causes shifts in the IS curve.c)It results in changes in fiscal policy.d)It is ineffective due to capital flows and exchange rate adjustments.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Q5: In the Mundell-Fleming model, what is the impact of an independent monetary policy under a fixed exchange rate regime?a)It leads to changes in the balance of payments.b)It causes shifts in the IS curve.c)It results in changes in fiscal policy.d)It is ineffective due to capital flows and exchange rate adjustments.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Q5: In the Mundell-Fleming model, what is the impact of an independent monetary policy under a fixed exchange rate regime?a)It leads to changes in the balance of payments.b)It causes shifts in the IS curve.c)It results in changes in fiscal policy.d)It is ineffective due to capital flows and exchange rate adjustments.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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