=+ 2. In the MundellFleming model with fl oating exchange rates, explain what happens to aggregate income,

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=+ 2. In the Mundell–Fleming model with fl oating exchange rates, explain what happens to aggregate income, the exchange rate, and the trade balance when the money supply is reduced.

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Macroeconomics

ISBN: 9781429240024

8th Edition

Authors: N Gregory Mankiw

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Question Posted: Sep 30, 2024 03:00 AM

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=+ 2. In the MundellFleming model with fl oating exchange rates, explain what happens to aggregate income, the exchange rate, and the trade balance when the money supply is reduced.
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=+income, the exchange rate, and the trade balance when taxes are raised. What would happen if exchange rates were fi xed rather than fl oating?
=+What would happen if exchange rates were fi xed rather than fl oating?
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=+ 2. In the MundellFleming model with fl oating exchange rates, explain what happens to aggregate income,

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Macroeconomics

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