Fiscal policy is most effective in a fixed-rate system when, Ask an Expert

Economics

Fiscal policy is most effective in a fixed-rate system when capital is perfectly mobile because there is no domestic “crowding out.” Explain what is meant by the term “crowding out,” and then critically evaluate the previous statement using the IS/LM/BP model.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91675676

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