Economists are of the view that the Mundell-Fleming Model is quite useful for explaining economic fluctuations in small open economies. Critically assess this statement.
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Economists are of the view that the Mundell-Fleming Model is quite useful for explaining economic fluctuations in small open economies. Critically assess this statement.
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- What are the assumptions in the small open economy.vs closed or largeopen? What would be an example country today?Do you think the Heckscher-Ohlin model sufficiently explains trade between countries? Explain why you think yes, or noAfter the Seattle 1999 World Trade Organisation Ministerial Conference there were many demonstrations against the idea of globalisation. Why were these demonstrations mostly directed at the IMF?
- Under fixed exchange rate system and small open economy, expansionary fiscal policy is effective while restricted trade policy is ineffective” Do you agree with the statement? Graphically explain your point of view by using Mundell-Fleming model.Which of the following belong among the key features of the current world economy? Predictability. Liberalization at the global level. Liberalization at the regional level. Higher degree of uncertainty regarding future development and volatility of capital flows.Successful company needs to strike a balance between responsiveness and efficiency. Discuss how companies should prepare for globalisation in item for responsiveness.
- Policymakers in open economies face a “trilemma” of three conditions that cannot all be realized at the same time. Which one of the following is not part of this “trilemma” of open-economy macroeconomics? Multiple Choice Be open to international flows. Implement capital controls. Fix its exchange rate. Control its domestic interest rate.What does it mean by "monetary and fiscal policies in a closed economy" when pertaining to macroeconomic policy in an open economy?Which of the following is true about the World Bank? OPTIONS: It is a U.N. sponsored agency that specializes in development loans. It is a multinational agency that specializes in development loans. It is a U.S. agency that specializes in development loans. It is made up of all central banks in the world
- What does it mean by "aggregate demand and aggregate supply" when pertaining to macroeconomic policy in an open economy?In your own words, define or describe globalization without being anchored/biased to the definitions of political experts, economists, and culture experts.With the following excerpts, explain the extent to which the extract supports the view that the BRICS have a similar macroeconomic performance.