Fiscal policy is effective with fixed exchange rates and unresponsive international capital flows.
A. (1) + (2)
B. (1) + (2) + (3)
C. (2) + (3)
D. (1) + (3)
Answer:A
Fiscal policy is effective with fixed exchange rates and unresponsive international capital flows.
A. (1) + (2) B. (1) + (2) + (3) C. (2) + (3) D. (1) + (3)