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Under flexible exchange rates, an expansionary fiscal policy leads to an increase in capital inflow and thus an appreciation of the exchange rate. Explain and
Under flexible exchange rates, an expansionary fiscal policy leads to an increase in capital inflow and thus an appreciation of the exchange rate." Explain and critically evaluate this statement using both IS-LM-IP and IS-MP-IP models
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Econometric Analysis
Authors: William H. Greene
7th edition
131395386, 131395381, 978-0131395381
