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2.2. The Mundell-Fleming model can be used to reflect monetary and fiscal policy under the assumption of imperfect capital mobility, and reflect on economic adjustments

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2.2. The Mundell-Fleming model can be used to reflect monetary and fiscal policy under the assumption of imperfect capital mobility, and reflect on economic adjustments that espouse on internal and external balances. Discuss, with the aid of a diagram(s), in eloquent details how an expansionary monetary policy (increase in money supply) under a flexible exchange rate regime would bring optimal internal and external balances. You are required to detail why every variable included in your analysis changes. (18) Note: Find attached the appendix below with optional graphs for analysis, you are required to copy and paste the graph(s) and further label it for analysis (please also include the graph number). GRAPH I. GRAPH J: GRAPH K

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