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a. Consider a small open economy with perfect capital mobility under the Mundell- Fleming framework. Discuss the effectiveness of monetary and fiscal policy under different

a. Consider a small open economy with perfect capital mobility under the Mundell- Fleming framework. Discuss the effectiveness of monetary and fiscal policy under different exchange rate regimes.

b. Briefly explain some of the shortcomings of the Mundell-Fleming model..

Please provide a full answer.

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