# Answer to Question #63541 in Macroeconomics for Hans

Question #63541

Use the Mundell-Fleming model to analyze the demand side in the AD-AS model. Assume perfect capital mobility and fixed nominal exchange rates. Compare the initial equilibrium value of the nominal money supply M_0 with the new equilibrium value M_1 after an unexpected one-time fall in the domestic price level. Mark the correct statement.

Select one or more:

a. M_0 < M_1

b. M_0 = M_1

c. We cannot make an unambiguous statement about the relationship between M_0 and M_1

d. M_0 > M_1

Select one or more:

a. M_0 < M_1

b. M_0 = M_1

c. We cannot make an unambiguous statement about the relationship between M_0 and M_1

d. M_0 > M_1

Expert's answer

Dear Hans, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed:

**Submit order**Need a fast expert's response?

Submit orderand get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

## Comments

## Leave a comment