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5. (Extra Credit) Suppose policymakers want to raise the level of investment (real invest ment I in the national accounts) without changing aggregate income or
5. (Extra Credit) Suppose policymakers want to raise the level of investment (real invest ment I in the national accounts) without changing aggregate income or the exchange rate. Illustrate the answers to the following questions using the open economy IS / LM diagram. (a) Is there any combination of domestic monetary and scal policy that would achieve this goal? (b) Is there any combination of domestic monetary, scal, and trade policy that would achieve this goal
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