7. How does the ISLM model for an open economy differ from the ISLM model for a...

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7. How does the IS–LM model for an open economy differ from the IS–LM model for a closed economy? Illustrate the use of the open-economy IS–LM model in describing how a recession in one country may be transmitted to other countries.

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Macroeconomics

ISBN: 126164

8th Edition

Authors: Andrew B. Abel, Ben Bernanke, Dean Croushore

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