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In an open economy with a fixed exchange rate and perfect capital mobility, a mortgage crisis leads to a fall in consumer spending How does
- In an open economy with a fixed exchange rate and perfect capital mobility, a mortgage crisis leads to a fall in consumer spending
- How does the economy come back to internal and external balance if the government does not intervene? Explain the process in words and illustrate graphically.
- What would be the impact of an expansionary monetary policy? Explain in words and illustrate graphically.
- What would be the impact of an expansionary fiscal policy? Explain in words and illustrate graphically.
- Now assume the exchange rate is flexible, what would be the most effective macro policy for the government to employ? Explain in words and illustrate graphically.
- How does the economy come back to internal and external balance if the government does not intervene? Explain the process in words and illustrate graphically.
- What would be the impact of an expansionary monetary policy? Explain in words and illustrate graphically.
- What would be the impact of an expansionary fiscal policy? Explain in words and illustrate graphically.
- Now assume the exchange rate is flexible, what would be the most effective macro policy for the government to employ? Explain in words and illustrate graphically.
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Managerial economics applications strategy and tactics
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris
12th Edition
9781133008071, 1439079234, 1133008070, 978-1439079232
