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Suppose that households decide to save a larger share of their income. Using Mundell - Fleming model for a small open economy , answer the
Suppose that households decide to save a larger share of their income. Using Mundell - Fleming model for a small open economy , answer the following questions : a. How does it affect IS curve and LM curve ? explain why ? economy ? explain why ? b. What are the changes in total output , exchange rate , consumption , investment and net exports of the economy? Explain why c. Draw Mundell - Fleming graph to demonstrate your answer ?
pls provide detailed answers, thank you
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