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In the case of a fixed exchange rate scheme, suppose there is an investment subsidy policy to promote employment. Explain the effects this has on

In the case of a fixed exchange rate scheme, suppose there is an investment subsidy policy to promote employment. Explain the effects this has on variables such as the Balance of Payments, the Interest Rate, the Exchange Rate, the Money Supply, the Price Level and the Level of Production, in the presence of a) Perfect Capital Mobility; b) Imperfect Capital Mobility.

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