In the Mundell-Fleming model, all of the following are true ...

[cookcarl]

In the Mundell-Fleming model, all of the following are true EXCEPT:
 
  a. the intersection of the IS and LM curves determine the equilibrium exchange rate.
  b. the BP curves position is determined by the exchange rate.
  c. the policy choice between fixed and floating exchange rates shifts the BP curve.
  d. the extent of capital mobility determines the slope of the BP curve.
  e. all of the above are true.

Question 2

The National Industrial Recovery Act of 1933 increased competition among firms.
 
  Indicate whether the statement is true or false

[wshriver]

Answer to Question 1

A

Answer to Question 2

False

[cookcarl]

Thanks for the timely response, appreciate it

[ricroger]

TYSM