Question
In order to curb inflation, the government of Canada decides to cut its spending. Canada has a floating exchange rate regime and there is a
In order to curb inflation, the government of Canada decides to cut its spending. Canada has a floating exchange rate regime and there is a high degree of capital mobility. What are the implications of the change in the exchange rate value of the dollar on national product? Does the exchange rate change tend to reinforce or counteract the initial impact of fiscal policy on national product?
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Managing in a Global Economy Demystifying International Macroeconomics
Authors: John E. Marthinsen
2nd edition
128505542X, 978-1305176157, 1305176154, 978-1285055428
