Refer to the diagram above in Study Exercise 6, but now suppose this is an open economy

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Refer to the diagram above in Study Exercise 6, but now suppose this is an open economy where financial capital is internationally mobile. Compared to the response to Study Exercise 6, describe the additional effect that takes place in an open economy.


Diagram from Study Exercise 6

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Ragan Macroeconomics

ISBN: 978-0134835822

16th Edition

Authors: Christopher Ragan

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