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Consider two small open economies, A and B, with fixed exchange rates and imperfect capital mobility. The two countries are identical except that capital flows

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Consider two small open economies, A and B, with fixed exchange rates and imperfect capital mobility. The two countries are identical except that capital flows are more sensitive to interest rate differentials in country A than in B. How would you expect the effectiveness of fiscal policies in the two countries to be influenced by this difference between them

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