Using the IS-LM-BP model with a low degree of capital mobility, what will be the effects of the following? A. deterioration in business optimism with fixed exchange rates B. An increase in the money supply with floating exchange rates. C. A rise in taxes with floating exchange rates D. A fall in the money supply with fixed exchange rates

Principles of Economics 2e
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Chapter29: Exchange Rates And International Capital Flows
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Using the IS-LM-BP model with a low degree of capital mobility, what will be the effects of the following?

A. deterioration in business optimism with fixed exchange rates

B. An increase in the money supply with floating exchange rates.

C. A rise in taxes with floating exchange rates

D. A fall in the money supply with fixed exchange rates

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