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

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

What would happen if exchange rates were fixed rather than floating?

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 30, 2024 08:00 AM

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

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Macroeconomics

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