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S. For a small country under exible and perfect capital mobility dealing with a large foreign country, analyze the effect on the interest rate, GDP,

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S. For a small country under exible and perfect capital mobility dealing with a large foreign country, analyze the effect on the interest rate, GDP, the exchange rate. and the current account balance of: i} An expansionary monetary policy in this small country. ii) An increase in foreign (large country) income. Use a model of the asset approach model to answer your questions

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