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Assuming perfect capital mobility, discuss the effectiveness of fiscal policy in an open economy under both fixed and flexible exchange rate regimes. (5 marks) Explain
- Assuming perfect capital mobility, discuss the effectiveness of fiscal policy in an open economy under both fixed and flexible exchange rate regimes. (5 marks)
- Explain the effect of imperfect capital mobility on the effectiveness of expansionary fiscal policy in an open economy. (5 marks)
- For two countries of your choice, evaluate the validity of the assumption of perfect capital mobility. (2.5 marks)
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The Business of Tourism Management
Authors: John Beech, Simon Chadwick
1st edition
273688013, 273688014, 9781405871631 , 978-0273688013
