Assuming imperfect capital mobility and a fixed exchange rate, then an

Assuming imperfect capital mobility and a fixed exchange rate, then an expansionary monetary policy

a. results in a balance of payments surplus without a conflict between domestic goals and external balance.
b. results in a balance of payments deficit with a potential conflict between domestic goals and external balance.
c. will shift the LM curve to the left.
d. will have no effect on the balance of payments.

ANSWER

B