In the MundellFleming model with floating exchange rates, explain what happens to aggregate income, the exchange rate,

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In the Mundell–Fleming model with floating exchange rates, explain what happens to aggregate income, the exchange rate, and the trade balance when taxes are raised. What would happen if exchange rates were fixed rather than floating?

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Macroeconomics

ISBN: 978-1464168505

5th Canadian Edition

Authors: N. Gregory Mankiw, William M. Scarth

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Question Posted: Dec 31, 2015 01:37 AM

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In the MundellFleming model with floating exchange rates, explain what happens to aggregate income, the exchange rate,

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In the MundellFleming model an increase in taxes shifts the IS curve to the left If the exchan...View the full answer

Macroeconomics

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