Question
Within the Mundell-Fleming model assuming imperfect capital mobility, analyze the effect of a fall in autonomous investment. Focus on the effect on income. Is this
Within the Mundell-Fleming model assuming imperfect capital mobility, analyze the effect of a fall in autonomous investment. Focus on the effect on income. Is this effect larger under fixed or flexible exchange rates?(Assume that the BP schedule is flatter than the LM schedule.)
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Assuming imperfect capital mobility the effect of a fall in autonomous investment under fixed exchange rate can be explained as follows A fall in auto...
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Macroeconomics Theories and Policies
Authors: Richard T. Froyen
10th edition
013283152X, 978-0132831529
