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1. A nation has flexible exchange rates. To mitigate the effects of a recession, the national government engages in expansionary fiscal policy. Insert the new
1. A nation has flexible exchange rates. To mitigate the effects of a recession, the national government engages in expansionary fiscal policy. Insert the new supply and/or demand curves and insert arrows to the change in the variables on the Y and X axes. Cost of Real Credit P S AS AD D RGDP RC2. A nation has flexible exchange rates. To mitigate the effects of a recession, the central bank engages in in expansionary monetary policy. Insert the new supply and/or demand curves and insert arrows to the change in the variables on the Y and X axes. Cost of Real Credit P S AS AD D RC RGDP3. A nation has fixed exchange rates so the central bank will intervene in the foreign exchange market to maintain the pegged exchange rate. To mitigate the effects of a recession, the national government engages in expansionary fiscal policy. Insert the new supply and/or demand curves and insert arrows to the change in the variables on the Y Tand X axes. Cost of Real Credit P S AS AD D RC RGDP4. A nation has fixed exchange rates. The nation suffers from high inflation, so the central bank engages in contractionary monetary policy. Show the effects of central banks initial actions by inserting the new supply and/or demand curves and insert arrows to the change in the variables on the Y and X axes. Cost of Real Credit P S AS r AD D RGDP RC
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