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Consider the U.S. and the European Union (EU) as two large open economies. Suppose that Y Y in the U.S. What happens to the level
Consider the U.S. and the European Union (EU) as two large open economies. Suppose that Y Y in the U.S. What happens to the level of U.S. GDP (Y) if the European Central Bank (ECB) implements an expansionary monetary policy? Illustrate and explain using the large open economy model.
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