Question

11). As per Mundell Model when there is a problem of Unemployment and Balance of
Payment Deficit the following policy measures are desirable
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Answer 1

Answer:

Your answer is......

Explanation:

The Mundell–Fleming model portrays the short-run relationship between an economy's nominal exchange rate, interest rate, and output (in contrast to the closed-economy IS-LM model, which focuses only on the relationship between the interest rate and output). The Mundell–Fleming model has been used to argue[according to whom?] that an economy cannot simultaneously maintain a fixed exchange rate, free capital movement, and an independent monetary policy. An economy can only maintain two of the three at the same time. This principle is frequently called the "impossible trinity," "unholy trinity," "irreconcilable trinity," "inconsistent trinity," "policy trilemma," or the "Mundell–Fleming trilemma.". Hope it will be helpful to you byeee.