Question
Consider an open economy with a flexible exchange rate. Let IS stand for the product market equilibrium condition, LM for the financial market equilibrium condition,
Consider an open economy with a flexible exchange rate. Let IS stand for the product market equilibrium condition, LM for the financial market equilibrium condition, and IP for the interest parity condition.
a) Write done the equations for the IS, LM and IP curves, defining the symbols you use (4 marks)
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Microeconomics
Authors: Roger A Arnold
13th Edition
1337617407, 9781337617406
