3. Suppose that policymakers in a large open economy want to raise the level of investment without...

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3. Suppose that policymakers in a large open economy want to raise the level of investment without changing aggregate income or the exchange rate.

a. Is there any combination of domestic monetary and fiscal policies that would achieve this goal?

b. Is there any combination of domestic monetary, fiscal, and trade policies that would achieve this goal?

c. Is there any combination of monetary and fiscal policies at home and abroad that would achieve this goal?

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Macroeconomics

ISBN: 9781429218870

7th Edition

Authors: N. Gregory Mankiw

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