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In the open-economy, suppose the domestic economy has a fixed exchange rate and the foreign country engages in fiscal expansion. Use the IS-LM and interest-parity
In the open-economy, suppose the domestic economy has a fixed exchange rate and the foreign country engages in fiscal expansion.
- Use the IS-LM and interest-parity graphs to show the effects of foreign fiscal expansion on domestic output, interest rate and exchange rate. Assume that the change in i* is smaller than the change in i caused by the initial shift of domestic IS curve. Briefly explain the results
- How will the components of GDP (C, I, G, and NX) change and why?
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Crashed How A Decade Of Financial Crises Changed The World
Authors: Adam Tooze
1st Edition
0143110357, 9780143110354
