Author Question: In a country with floating exchange rates and low capital mobility, an increase in government ... (Read 118 times)

jon_i · **on:** Jun 30, 2018

In a country with floating exchange rates and low capital mobility, an increase in government spending will be

A) highly effective.
B) less effective than with high capital mobility.
C) not effective at all.
D) harmful to the growth of real incomes.

Question 2

Debt service payments appear in

(a) the current account.
(b) the capital account.
(c) the cash account.
(d) errors and omissions.