Answer to Question #62656 in Macroeconomics for Asca
What is assumed in the Mundell-Fleming model about goods prices? (several answers can be correct)
(a) They are fixed because the economy is operating below its full capacity.
(b) They are fixed because the economy is operating at its full capacity.
(c) They are flexible because the economy is operating at its full capacity.
(d) There are no assumptions about the goods prices because the model does not treat them explicitly.
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