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Fiscal policy is one of the most used macroeconomic policy tools for managing economies. If there is perfect capital mobility and fixed exchange rate regime
Fiscal policy is one of the most used macroeconomic policy tools for managing economies. If there is perfect capital mobility and fixed exchange rate regime in an economy, would fiscal policy be effective? Or it would be more effective under flexible exchange rate regime? Use graphs if needed and explain your answer with your own words.
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