Question
4. Using the IS-LM framework, discuss the effects of an increase in government spending by a country on its output, interest rate, exchange rate, and
4. Using the IS-LM framework, discuss the effects of an increase in government spending by a country on its output, interest rate, exchange rate, and trade balance (a) under a flexible exchange rate system, and (b) under a fixed exchange rate system. (8 points)
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Macroeconomics Principles and Applications
Authors: Robert E. Hall, Marc Lieberman
6th edition
1111822352, 1111822354, 9781133708742 , 978-1111822354
