Draw on graph paper a figure similar to Figure 18.4, but without the broken curves IS and
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Draw on graph paper a figure similar to Figure 18.4, but without the broken curves IS′ and LM′ and assuming that the full-employment level of national income is YF = 1200. Indicate on your figure the appropriate mix of fiscal and monetary policies required for the nation to achieve simultaneously internal and external balance under a fixed exchange rate system.
Exchange RateThe value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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