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Q9: In the Mundell-Fleming model, what is the relationship between fiscal policy and the domestic interest rate under a fixed exchange rate regime with perfect capital mobility?a)Fiscal policy has no impact on the domestic interest rate.b)Fiscal expansion leads to lower domestic interest rates.c)Fiscal contraction leads to higher domestic interest rates.d)Fiscal policy is effective only in increasing capital outflows.Correct answer is option 'B'. 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 Q9: In the Mundell-Fleming model, what is the relationship between fiscal policy and the domestic interest rate under a fixed exchange rate regime with perfect capital mobility?a)Fiscal policy has no impact on the domestic interest rate.b)Fiscal expansion leads to lower domestic interest rates.c)Fiscal contraction leads to higher domestic interest rates.d)Fiscal policy is effective only in increasing capital outflows.Correct answer is option 'B'. 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 Q9: In the Mundell-Fleming model, what is the relationship between fiscal policy and the domestic interest rate under a fixed exchange rate regime with perfect capital mobility?a)Fiscal policy has no impact on the domestic interest rate.b)Fiscal expansion leads to lower domestic interest rates.c)Fiscal contraction leads to higher domestic interest rates.d)Fiscal policy is effective only in increasing capital outflows.Correct answer is option 'B'. Can you explain this answer?.

Solutions for Q9: In the Mundell-Fleming model, what is the relationship between fiscal policy and the domestic interest rate under a fixed exchange rate regime with perfect capital mobility?a)Fiscal policy has no impact on the domestic interest rate.b)Fiscal expansion leads to lower domestic interest rates.c)Fiscal contraction leads to higher domestic interest rates.d)Fiscal policy is effective only in increasing capital outflows.Correct answer is option 'B'. 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 Q9: In the Mundell-Fleming model, what is the relationship between fiscal policy and the domestic interest rate under a fixed exchange rate regime with perfect capital mobility?a)Fiscal policy has no impact on the domestic interest rate.b)Fiscal expansion leads to lower domestic interest rates.c)Fiscal contraction leads to higher domestic interest rates.d)Fiscal policy is effective only in increasing capital outflows.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Q9: In the Mundell-Fleming model, what is the relationship between fiscal policy and the domestic interest rate under a fixed exchange rate regime with perfect capital mobility?a)Fiscal policy has no impact on the domestic interest rate.b)Fiscal expansion leads to lower domestic interest rates.c)Fiscal contraction leads to higher domestic interest rates.d)Fiscal policy is effective only in increasing capital outflows.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Q9: In the Mundell-Fleming model, what is the relationship between fiscal policy and the domestic interest rate under a fixed exchange rate regime with perfect capital mobility?a)Fiscal policy has no impact on the domestic interest rate.b)Fiscal expansion leads to lower domestic interest rates.c)Fiscal contraction leads to higher domestic interest rates.d)Fiscal policy is effective only in increasing capital outflows.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Q9: In the Mundell-Fleming model, what is the relationship between fiscal policy and the domestic interest rate under a fixed exchange rate regime with perfect capital mobility?a)Fiscal policy has no impact on the domestic interest rate.b)Fiscal expansion leads to lower domestic interest rates.c)Fiscal contraction leads to higher domestic interest rates.d)Fiscal policy is effective only in increasing capital outflows.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Q9: In the Mundell-Fleming model, what is the relationship between fiscal policy and the domestic interest rate under a fixed exchange rate regime with perfect capital mobility?a)Fiscal policy has no impact on the domestic interest rate.b)Fiscal expansion leads to lower domestic interest rates.c)Fiscal contraction leads to higher domestic interest rates.d)Fiscal policy is effective only in increasing capital outflows.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice B Com tests.