Social Studies, 24.04.2020 16:54 Masielovebug

According to the Mundell-Fleming model, in a small open economy with flexible exchange rates, when the world interest rate falls, the domestic interest rate in the small open economy will .
a. eventually fall.
b. remain unchanged.
c. rise.
d. cannot be determined.

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According to the Mundell-Fleming model, in a small open economy with flexible exchange rates, when t...