Q 5

1.As a strong leader of your country you have the authority to change Government Spending, G. You also have the authority to choose a fixed or floating exchange rate and the strength of capital controls. As a result of Covid-19 response your country is in a recession. While well liked by the population you know that certain aspects of the economy are crucial to the population. They want more Investment, I, a higher GDP, Y, and higher Net Exports, NX. Discuss your choices of policy: fixed or floating exchange rate, and strong or weak capital controls in light of satisfying all the desires of the population. The charts below may provide you with some assistance.

K Y LM FE AKTNBayNA Wind 4TO6bl akTNBNPOBaTb V IS manamaroam KOMnbHOT Y