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With three equations we must also have three endogenous variables. Which variables should best be treated as endogenous if: a) The country has a fixed
With three equations we must also have three endogenous variables. Which variables should best be treated as endogenous if: a) The country has a fixed exchange rate? b) The country has a floating exchange rate and the central bank is assumed to set the money supply exogenously? c) The country has a floating exchange rate and the central bank is assumed to set the interest rate exogenously? Explain in economic terms
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