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
105 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)
Find the derivative of f(x) = 3x^2 - 4x + 2.
+
What is the product of 36 and 44?
+
Question: What is the maximum amplitude and period of the sine function f(x) = sin x?
+
New questions in Mathematics
8x²-30x-10x²+70x=-30x+10x²-20x²
a ferry travels 1/6 of the distance between two ports in 3/7 hour. The ferry travels at a constant rate. At this rate, what fraction of the distance between the two ports can the ferry travel in one hour.
The gross domestic product the gdp for the United States in 2017 was approximately $2.05x10^3. If you wrote this number in standard notation , it would be 205 followed by how many zeros
3(4x-1)-2(x+3)=7(x-1)+2
The sum of two numbers is 6, and the sum of their squares is 28. Find these numbers exactly
4x/2+5x-3/6=7/8-1/4-x
There were no defectives in a sample of 1 light bulb does this sample provide sufficient evidence that in the warehouse with millions of light bulbs fewer than 10% are defective?
Primes are numbers divisible only by 1 and themselves; There are infinitely many prime numbers and the first ones are 2, 3, 5, 7, 11, 13, 17, 19, 23, .... Consider a 12-sided die, with the faces numbered from 1 to 12. Out of 4 rolls, the probability that only the first three numbers are primes is:
1. A pediatric client is prescribed digoxin for congestive heart failure. The dose prescribed is 40 mcg/kg twice daily. The child weighs 33 pounds. What is the dosage in mg to be given per dose? Round to the nearest hundredth. Calculate your answer in mg per dose. Enter numerical value only.____mg
A function is considered exponential when it has a base with positive values greater than zero and different from one, where the exponent is an unknown. An important characteristic of exponential functions is that they show rapid growth or decay as an independent variable increases or decreases. Given the function 25^(x+3)=125, it is calculated that x has the value of
MAKING AN ARGUMENT You use synthetic division to divide f(x) by (x − a) and find that the remainder equals 15. Your friend concludes that f (15) = a. Is your friend correct? Explain your reasoning.
The business college computing center wants to determine the proportion of business students who have personal computers (PC's) at home. If the proportion is greater than 35%, then the lab will modify a proposed enlargement of its facilities. Suppose a hypothesis test is conducted and the test statistic is z= 2.6. Find the P-value for this test.
solid obtained by rotation around the axis x = -1, the region delimited by x^2 - x + y = 0 and the abscissa axis
Solve the following 9x - 9 - 6x = 5 + 8x - 9
Emile organizes a community dance to raise funds. In addition to paying $300 to rent the room, she must rent chairs at $2 each. The quantity of chairs rented will be equal to the number of tickets sold. She sells tickets for $7 each. How much should she sell to raise money?
Select a variable and collect at least 50 data values. For example, you may ask the students in the college how many hours they study per week or how old they are, etc. a. Explain what your target population was. b. State how the sample was selected. c. Summarise the data by using a frequency table. d. Calculate all the descriptive measures for the data and describe the data set using the measures. e. Present the data in an appropriate way. f. Write a paragraph summarizing the data.
Let I be an interval and let f : I → R be a continuous function such that f(I) ⊂ Q. Show (in symbols) that f is constant.
Write decimal as the fraction 81/125 simplified
Carmen's age was twice as old as Luis was when Carmen was Luis's age. When Luis is Carmen's age, their ages will add up to 112.
Solve the system of equations by the addition method. 0.01x-0.08y=-0.1 0.2x+0.6y=0.2