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1. a. Explain the macroeconomic effects of a monetary expansion in a small country with perfect capital mobility. b. Explain the macroeconomic effects of a

1. a. Explain the macroeconomic effects of a monetary expansion in a small country with perfect capital mobility.

b. Explain the macroeconomic effects of a monetary expansion in a small country with zero capital mobility.

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a In a small country with perfect capital mobility a monetary expansion refers to the central bank increasing the money supply by purchasing governmen... blur-text-image

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