In the Mundell-Fleming model, assuming FLEXIBLE exchange rate regime, how would a decrease in investments affect the economic equilibrium under LOW capital mobility?
1, It will (increase/decrease/no change) the output,
2, (appreciate/depreciate/no change) the domestic currency.

Question

07-06-2024
Business

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In the Mundell-Fleming model, assuming FLEXIBLE exchange rate regime, how would a decrease in investments affect the economic equilibrium under LOW capital mobility?
1, It will (increase/decrease/no change) the output,
2, (appreciate/depreciate/no change) the domestic currency.

Sagot :

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