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Discuss the following Scenarios: Question 1 Assume that Capital is Mobile between countries (BP flatter than LM). Is fiscal policy such as increase in government
Discuss the following Scenarios:
Question 1
Assume that Capital is Mobile between countries (BP flatter than LM). Is fiscal policy such as increase in government expenditure effective under Fixed Exchange Rates?
Question 2
How effective is Monetary policy such as Increase in money supply under Fixed Exchange Rates and with Mobile Capital (BP flatter than LM)
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