Question

effectiveness of fiscal and monetary policy under closed and open economies

93

likes
464 views

Answer to a math question effectiveness of fiscal and monetary policy under closed and open economies

Expert avatar
Hank
4.8
101 Answers
The effectiveness of fiscal and monetary policy in an open economy depends on several factors, such as the degree of openness of the economy (the extent to which it is integrated with the rest of the world), the exchange rate regime (the degree to which it is fixed or flexible), the degree of competition (the extent to which prices are determined by market forces or by government intervention), and the degree of coordination (the extent to which countries cooperate or compete with each other). According to some studies, fiscal policy is more effective in a closed economy than in an open economy because it can directly affect domestic output and employment without worrying about spillover effects on other countries. However, according to other studies, fiscal policy is less effective in a closed economy than in an open economy because it faces crowding out from private investment due to higher interest rates caused by higher government borrowing. Similarly, according to some studies, monetary policy is more effective in an open economy than in a closed economy because it can directly affect domestic output and employment through changes in interest rates without worrying about spillover effects on other countries. However, according to other studies, monetary policy is less effective in an open economy than in a closed economy because it faces crowding out from private investment due to higher interest rates caused by higher money supply.

Frequently asked questions (FAQs)
What is the number of ways to arrange 8 people in a line if only 4 of them can be in the front row?
+
What is the probability of rolling a number greater than 4 with a fair 6-sided die?
+
What is 100 degrees in radians?
+
New questions in Mathematics
How do you think the company has increased or decreased its income?
a bank finds that the balances in its savings accounts are normally distributed with a mean of $500 and a standard deviation off of $40. What is the probability that a randomly selected account has a balance of more than $400?
[(36,000,000)(0.000003)^2]divided(0.00000006)
30. In 8 s, a car that starts from rest and moves with uniformly accelerated motion has achieved a speed of 72m/s. How much space must it travel to reach a speed of 90m/s? Sunshine: 450 m
A company that manufactures personal hygiene items purchases machinery for $220,000 that is considered to last 7 years; it is estimated that at the end of the period it will have a salvage value of $1000. Find: to. The depreciation rate. b. The book value at the end of the sixth year.
I need to know what 20% or £3292.75
The thermal representation f(x) = 20 times 0.8 to the power of x is known from an exponential function f. Specify the intersection point with the y-axis
Three squares have a total area of 35.25 𝑐𝑚2 . The larger square has twice the side-length of the middle-sized square. The smaller square has its side length exactly 0.5 cm smaller than the middle-sixed square. Find the side lengths of each of the three squares.
form a key for your lock containing the numbers 2 2 5 8 How many different keys can you form?
Calculate the minimum size of a simple random sample assuming a sampling error of 5% assuming that the population size is 100 elements
factor the polynomial completely over the set of complex numbers b(x)=x^4-2x^3-17x^2+4x+30
94 divided by 8.75
2x-5-x+2=5x-11
00 piece jigsaw puzzle. the completed puzzle is 10x10. each piech connects to at least 2 other pieces. i plan to assemble by taking pieces out of box one by one. if i've already taken out 2 pieces that dont directly connect, what is the minimum number of additional pieces that i need to draw to in order to guarentee that the original 2 pieces connect?
Find I (Intrest) using simple interest formula of 17700 @ 15% for 4 years
0<x<2π aralığındaki f(x)=x÷2 fonksiyonunun 0 < x < 4π için grafiğini çiziniz ve 0<x<2n için Fourier seri dönüşümünü gerçekleştiriniz.
a coffee shop has 9 types of creamer and 11 types of sweetener. In how any ways can a person make their coffee?
the length of the fenced in area is to be 5 ft greater than the width and the total amount of fencing to be used is 89 ft find the width and length
A small box measures 10 in. by 4 in. by 6 in. high. Find the volume of the box.
To apply a diagnostic test, in how many ways can 14 students be chosen out of 25? if the order does not matter