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

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3. In the Mundell–Fleming model with floating exchange rates, explain what happens to aggregate income, the exchange rate, and the trade balance when a quota on imported cars is removed.What would happen if exchange rates were fixed rather than floating?

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Macroeconomics

ISBN: 9780716752370

5th Edition

Authors: N. Gregory Mankiw

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