Question
Using the IS-LM-BP model with a low degree of capital mobility, what will be the effects of the following? a) A deterioration in business optimism
Using the IS-LM-BP model with a low degree of capital mobility, what will be the effects of the following? a) A deterioration in business optimism with fixed exchange rates. (7 Marks) b) An increase in the money supply with floating exchange rates. (6 Marks) c) A rise in taxes with floating exchange rates. (6 Marks) d) A fall in the money supply with fixed exchange rates. (6 Marks)
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The World Economy Geography, Business, Development
Authors: Frederick P. Stutz, Barney Warf
6th edition
321722508, 321722507, 978-0321722508
