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Author Question: The specific factors model assumes that there are ________ goods and ________ factor(s) of ... (Read 65 times)

Medesa

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The specific factors model assumes that there are ________ goods and ________ factor(s) of production.
 
  A) two; three
  B) two; two
  C) two; one
  D) three; two
  E) four; three

Question 2

Use a figure to explain the potential effectiveness of fiscal policy to spur on the economy under a fixed exchange rate.
 
  What will be an ideal response?



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jliusyl

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Answer to Question 1

A

Answer to Question 2

With an aim toward increasing output, the government could use fiscal policy to shift the DD curve outward. The central bank will have to take steps to maintain a fixed exchange rate , among the options is buying foreign assets with money, to shift the AA schedule outward until the equilibrium at point 3 is reached.




Medesa

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


Jsherida

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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