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Consider a two country world consisting of the United Kingdom (UK) and the US. If the US goes into a recession, then the UK would
Consider a two country world consisting of the United Kingdom (UK) and the US. If the US goes into a recession, then the UK would rather have the US conduct expansionary monetary policy rather than fiscal policy since with expansionary US monetary policy US citizens will expenditure switch from US goods and services towards UK goods and services.
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